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=$1000 r=2% t=1 year

= $20

Step-by-step explanation:

Simple interest is given by the formula'

Interest = PRt/100, where P is the principal amount, R is the rate of interest and t is the interest period in years

Therefore;

Simple interest = ($ 1000 * 2 * 1) / 100

= $ 20

The simple interest owed for the use of the principal at a period of 1 year is $ 20.