Question

an accountant for a corporation forgot to pay the firms income tax of $725,839.84 on time. the government charged a penalty of 9.6% simple interest for the 45 days the money was late. find the total amount (tax and penalty) that was paid. assume 365 days in a year. the total amount paid was $ . (round to the nearest cent as needed.)

Explanation:

Step1: Calculate the simple - interest amount

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the time in years.
The principal amount $P=\$725839.84$, the annual interest rate $r = 0.096$, and the time $t=\frac{45}{365}$ years.
$I=Prt=725839.84\times0.096\times\frac{45}{365}$
$I = 725839.84\times0.096\times0.12328767$
$I=725839.84\times0.01183561$
$I\approx8695.77$

Step2: Calculate the total amount paid

The total amount paid is the sum of the principal (the income - tax amount) and the interest (penalty) amount.
Let $A$ be the total amount paid. Then $A=P + I$.
$A=725839.84+8695.77$
$A = 734535.61$

Answer:

$734535.61$