To solve this question, we need to apply the next formula for simple interest:
[tex]FV=PV(1+in)[/tex]Where,
FV = future value (the value after applying the simple interest).
PV = present value (in this case, $5475).
i = 10%
n = 6 months or 0.5 of a year (the tax must be paid having a year).
Then, we have:
[tex]FV=5475\cdot(1+(0.1\cdot0.5))\Rightarrow FV=5475\cdot(1+0.05)\Rightarrow FV=5475\cdot(1.05)[/tex]Hence, we have:
[tex]FV=5748.75[/tex]Then, the amount of the penalty was
5748.75 - 5475 = $273.75
