Answer: $250
Explanation:
From the question, we are told that Elmo Johnson was late on his property tax payment to the county and that he owed $7,500 and paid the tax four months late.
We are further told that the county charges an annual penalty of 10%. The amount of the penalty for the four-month period goes thus:
Annual penalty = 10% × $7500
= 0.1 × $7500
= $750
Since he is four months late and there are twelve months in a year, this will be:
= $750 × 4/12
= $750 × 1/3
= $750/3
= $250
