A town in California fines residents who do not pay their property taxes on
time. All residents must pay their taxes before July 1st for that calendar year or
face the following fine structure: For the first month the taxes are overdue (that
would be any payment made on July 1st through July 31st), the total fine is 1%
of the original tax bill; for each additional month that the taxes are overdue,
the total fine is increased by $600 or doubled, whichever results in the lesser
amount. What is the total fine for a resident of that town who originally owed
$20,000 in property taxes, but did not pay until October 15th?
(A) $1,400
(B) $1,800
(C) $2,400
(D) $21,400
(E) $22,800
Answer is A
time. All residents must pay their taxes before July 1st for that calendar year or
face the following fine structure: For the first month the taxes are overdue (that
would be any payment made on July 1st through July 31st), the total fine is 1%
of the original tax bill; for each additional month that the taxes are overdue,
the total fine is increased by $600 or doubled, whichever results in the lesser
amount. What is the total fine for a resident of that town who originally owed
$20,000 in property taxes, but did not pay until October 15th?
(A) $1,400
(B) $1,800
(C) $2,400
(D) $21,400
(E) $22,800
Answer is A
