Homework SourseMolly Ellen bookkeeper for Keystone Company forgot to send i
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 6.80% simple interest on the unpaid taxes of $1,800. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.)
| 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 6.80% simple interest on the unpaid taxes of $1,800. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) |
Solution
Penalty rate = 6.80%
Unpaid taxes = 1800
Delayed time = Apr 15 to Nov 8
No of days
April = 15
May = 31
JUne =30
July =31
Aug =31
Sep =30
Oct =31
Nov =8
Total days = 207
Simple interest for 207 days for 1800 @ 6.8% = 207(6.8)1800/36500 = 10.208 =10.21 dollars
