Your Gas Bill for March Is $274

question 47

Essay

Your gas bill for March is $274.40. If you pay after the due date, a late payment penalty of $10.72 is added. What is the percent penalty?

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Definitions:

Cumulative

Pertaining to an aggregate or total amount added up over time, often used in context with dividends that are accumulated if not paid out.

Noncumulative

A term often used in dividends policy, indicating that if a dividend is not paid out, it doesn't accumulate for future payment.

U.S. GAAP

United States Generally Accepted Accounting Principles, which constitute the framework of guidelines for financial accounting used in the US.

Interest Expense

The charge for borrowing money typically calculated as a rate of the principal amount annually.