an accountant for a corporation forgot to pay the firms income tax of $725,793.14 on time. the government…

an accountant for a corporation forgot to pay the firms income tax of $725,793.14 on time. the government charged a penalty of 7.4% interest for the 32 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 $725,793.14 on time. the government charged a penalty of 7.4% interest for the 32 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 formula for simple - interest penalty is $I = Prt$, where $P$ is the principal amount (tax amount), $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. First, convert the annual interest rate $r = 7.4%=0.074$. The time $t=\frac{32}{365}$ years and $P = 725793.14$. $I=Prt=725793.14\times0.074\times\frac{32}{365}$ $I = 725793.14\times0.074\times0.08767123$ $I=725793.14\times0.00648767$ $I = 4711.57$

Step2: Calculate the total amount paid

The total amount $A$ is the sum of the tax amount $P$ and the penalty amount $I$. $A=P + I$ $A=725793.14+4711.57$ $A = 730504.71$

Answer:

$730504.71$