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.

Question

can you please explain how we do this. thank you.

Answer 1

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)
=?