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 365 days in a year.
P = $670, r = 2%, t = 2 years
To find the simple interest, you can use the formula:
Simple Interest = P x r x t
Substitute the given values:
Simple Interest = $670 x 0.02 x 2
Simple Interest = $670 x 0.04
Simple Interest = $26.80
Therefore, the simple interest owed for the use of the money is $26.80.