Multiply the amount owing by the annual rate, prorate for the number of days outstanding.
Amount owing = $646.07
Annual rate = 9.8% = 0.098
Number of days outstanding=Apr 20 to Aug 29
= (11+31+30+31+29) days
= 132 days
Penalty = 646.07*0.098*(132/365)
=?
Chad's property tax is 646.07 and is due April 20. He does not pay until Aug 29. 9.8 % Simple interest on unpaid tax. Find the penalty.
can you please explain how we do this. thank you.
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