Question

State Bank made a loan at 12% interest for 360 days. If the amount of interest was $934.20, use the ordinary interest method to find the amount of principal borrowed.

Answer 1

If 360 days counts as a year, then you want P such that

0.12*P = 934.20

If a year is counted as 365 days, then

0.12*(360/365)*P = 934.20

Answer 2

Note:
<i>Ordinary</i> interest method is based 360 days in a year.
<i>Exact</i> interest method is based on 365 days in a year.