Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent if necessary.
-John forgot to pay his $\$ 368.00$ income tax on time. The IRS charged a penalty of $13 \%$ for the 69 days the money was late. Find the penalty that was paid. (Use a 365 day year.)
A) $\$ 377.04$
B) $\$ 9.04$
C) $\$ 1.83$
D) $\$ 8.91$

Question

Quizplus · Accepted Answer

The penalty is calculated using the formula for simple interest: $I = P \times r \times t$, where $I$ is the interest (penalty in this case), $P$ is the principal amount (\$368), $r$ is the annual interest rate (13% or 0.13 when expressed as a decimal), and $t$ is the time in years. For 69 days out of a 365-day year, $t = \frac{69}{365}$. Plugging in the values: $I = 368 \times 0.13 \times \frac{69}{365} = \$9.04$.

Solve the Problem $368.00\$ 368.00$368.00 Income Tax on Time 13%13 \%13% For the 69 Days the Money Was Late

Solve the Problem $\$ 368.00$ Income Tax on Time $13 \%$ For the 69 Days the Money Was Late