Hi again, I have another "word" problem that is confusing me. If someone would be willing to help I would appreciate it:) Here is the question: On Oct. 12 a state income tax payment was made, which was due on June 30. The penalty was 8% simple interest on the unpaid tax of $909. Find the penalty using exact interest. Thanks in advance for any help you guys:) denise

Question

Hi again, I have another "word" problem that is confusing me.  If someone would be willing to help I would appreciate it:)  Here is the question: On Oct. 12 a state income tax payment was made, which was due on June 30.  The penalty was 8% simple interest on the unpaid tax of $909.  Find the penalty using exact interest.  Thanks in advance for any help you guys:) denise

anonymous · Answer

I think the question is poorly written but that is typical homework here.  I assumed I needed to figure out the number of days and divide those by 365, then multiply by .08.  Then by 909.  I keep getting 52 something or other and the answer is supposed to be 20.72.  $909(.08*261/365)

campbell_st · Answer

isn't you time period 

July 31 days

August 31 days

September 30 days 

October 12 days

so the time is n = 104/365

so I = 909 * 0.08 * 104/365


just a thought.

anonymous · Answer

Ok, I was using this chart and it is way confusing.  I will do these the way you did with the numbers of days in the months, thank you much, and I will see if I get the right answer;) denise

anonymous · Answer

Exactly right:) Thank you Campbell, denise