Asked by Rachel Weatherbee on Jun 07, 2024
Verified
In addition to a $2,163 refund of his income tax overpayment, the Canada Revenue Agency (CRA) paid Raisa $13.36 of interest on the overpayment. If the simple interest rate paid by Revenue Canada was 5.5%, how many days' interest was paid?
Income Tax Overpayment
A situation where an individual or entity has paid more income tax to the government than was actually owed.
Canada Revenue Agency
The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.
Simple Interest
A method of calculating interest where the charge is based on the original principal amount and does not compound.
- Comprehend the computation and utilization of simple interest in diverse economic situations.
- Ascertain the amount of interest due on accounts in arrears or payments that have been postponed.
- Understand the influence of fluctuating interest rates on the total interest accrued across various durations.
Verified Answer
AT
Learning Objectives
- Comprehend the computation and utilization of simple interest in diverse economic situations.
- Ascertain the amount of interest due on accounts in arrears or payments that have been postponed.
- Understand the influence of fluctuating interest rates on the total interest accrued across various durations.