Please explain the calculation

A pays LIBOR to B

B pays Fixed 8% to A

at t=0 libor=9%

at t=1 libor=7%

at t=2 libor=10%

Given the above , which of the following statements is CORRECT? At time period 2:

A) B pays A $1 million. B) A pays B $2 million. C) A pays B $7 million and B pays A $8 million.

how to calculate,

i was calculating B pays (0.08-0.07)*1/2*100,000,000=500,000,

where as answer is taking B Pays (0.08-0.07)*360/360*100,000,000=1 million , why it is taking 360/360 & why not 180/360