Question

alex was late on his property tax payment to the county. he owed $7,364 and paid the tax 8 months late. the county charges a penalty of 7% simple interest. find the amount of the penalty. (round to the nearest cent as needed)

Answer 1

The penalty is 7% simple interest. If he paid 8 months late, then;

$\begin{gathered} I=\text{PRT} \\ I=7364\times0.07\times(\frac{8}{12}) \\ I=343.65 \end{gathered}$

The penalty is 343.65 cents (rounded to the nearest cen