jackson's property tax is $616.97 and is due April 20th. he does not pay until june 17th. the county adds a penalty of 8.1% simple interest on unpaid tax. find the penalty using exact interest.

Question

jim_thompson5910 · Answer

You would use the formula

I = Prt

to compute the interest

anonymous · Answer

but what would be t?

jim_thompson5910 · Answer

in this case P = 616.97 (principal r = 0.081 (interest) t = 27/365 (this is because you're using exact interest) I used wolfram alpha to count the days from april 20th to june 17th http://www.wolframalpha.com/input/?i=april+20+to+june+17

jim_thompson5910 · Answer

oh wait, used the wrong number lol

anonymous · Answer

oh okay I wasn't sure about that

anonymous · Answer

right, it should be around 57

jim_thompson5910 · Answer

t = 59/365 sorry I misread and the 27 was referring to days from today til april 20th this page has the count you want http://www.timeanddate.com/date/durationresult.html?m1=4&d1=20&y1=&m2=6&d2=17&y2=&ti=on

jim_thompson5910 · Answer

So you'll be adding on 

I = Prt

I = 616.97(0.081)*(59/365)

I = 8.0780811780822

I = 8.08

dollars in interest to the amount you already owe

anonymous · Answer

I got it wrong. That's strange.

jim_thompson5910 · Answer

what did you get?

anonymous · Answer

It doesn't say the correct answer.

jim_thompson5910 · Answer

oh so 8.08 is wrong?

anonymous · Answer

actually it does here, 7.94

jim_thompson5910 · Answer

hmm maybe they're using 58 days

jim_thompson5910 · Answer

yeah 58, dang

anonymous · Answer

thats okay, now I know how to solve those. thanks!

jim_thompson5910 · Answer

I = Prt 

I = 616.97(0.081)*(58/365) 

I = 7.9411645479452

I = 7.94