an accountant for a corporation forgot to pay the firms income tax of $725,695.59 on time. the government…

an accountant for a corporation forgot to pay the firms income tax of $725,695.59 on time. the government charged a penalty of 8.5% interest for the 51 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.)

an accountant for a corporation forgot to pay the firms income tax of $725,695.59 on time. the government charged a penalty of 8.5% interest for the 51 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.)

Answer

Explanation:

Step1: Calculate the penalty amount

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. The principal amount $P=$725695.59$, the annual interest rate $r = 8.5%=0.085$, and the time $t=\frac{51}{365}$ years. $I=Prt=725695.59\times0.085\times\frac{51}{365}$ $I = 725695.59\times0.085\times0.139726$ $I=725695.59\times0.0118767$ $I\approx8614.77$

Step2: Calculate the total amount paid

The total amount $A$ is the sum of the tax amount $P$ and the penalty amount $I$. $A = P+I$ $A=725695.59 + 8614.77$ $A = 734310.36$

Answer:

$734310.36$