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Novay_Z [31]
2 years ago
12

Woody’s Cafe Real Estate tax of $1,110.85 was due on November 1, 2010. Due to financial problems, Woody was unable to pay his ca

fe real estate tax bill until January 15, 2011. The penalty for late payment is 8.25% ordinary interest. (A) What is the penalty Woody will have to pay and (B) what will Woody totally pay on January 15?
Mathematics
1 answer:
Dima020 [189]2 years ago
4 0
Ordinary interest is based on simple interest over 360 days per year.
Number of days late = (January 15-November 1)=14+31+30=75 days
(A) Penalty
=1110.85*0.0825*(75/360)
=$19.09
(B) total amount
=1110.85*(1+0.0825*(75/360))
=$1129.94
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