Molly Ellen, bookkeeper for Keystone Company, forgot to send in the payroll taxes due on April 15. She sent the payment November 8. The IRS sent her a penalty charge of 8.80% simple interest on the unpaid taxes of $3,600. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table.)

Question

Henry · Accepted Answer

I=Po*r*t = 3600*(0.088/365)*207=$179.66 = Penalty.

jim · Answer

$179.66