how to calculate the penalty QUESTION 19 Please calculate th

QUESTION 19 Please calculate the interest if any on a Total Sales Tax Collected of $2,850.52 that is filed 102 days late. Use a daily interest factor of 0.000191781 and do not enter a $in the answer box.

Solution

Daily interest factor 0.000191781 No.of days in a Year 365 So, annual Interest rate=(Interest factor*365)= 0.07 ie. 7% So, interest amount = (2850.52/(1+0.07))*0.07= 186.48 Penalty 186.48 Actual sales tax amount 2664.04 Total amt.collected 2850.52 ANSWER: Penalty for late payment 186.48