SOLUTION: The principal P is borrowed at a single 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 and round answers

Question 730369: The principal P is borrowed at a single 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 and round answers to the nearest cent.
P=270, r=5%, t=2 years. I know I=Prt is the formula and its set up as 270*.05*___ the time is what is confusing me for some reason.. do i make the time 24 months? or 720 days /12 which is 60?

Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
Interest is always given as an annual rate.
I would use two years. I don't know if the 360 is to confuse you or you should convert to days.
I=Prt
I=270*0.05*2
I=$27
----------------
or
I=270*0.05/360*720
I=$27
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