Solve the Problem

Multiple Choice

Solve the problem. Assume that simple interest is being calculated in each case. Round the answer to the nearest cent
unless otherwise indicated.
-John forgot to pay his $408.00 income tax on time. The IRS charged a penalty of 5% for the 74 days the money was late. Find the penalty that was paid. (Use a 365 day year.)

A) $4.14
B) $0.34
C) $4.08
D) $412.14