Question

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year.

P​ = ​$370​, r​ = 2​%, t​ = 2 years

Answer 1

Explanation:

Using the formula for simple interest:

Simple Interest = P * r * t

where P is the principal, r is the rate of interest, and t is the time in years.

Substituting the given values:

Simple Interest = $370 * 0.02 * 2 = $14.80

Therefore, the simple interest owed for the use of the money is $14.80.