Marry loaned Gerry $300 at an interest rate of 10 percent a year. How much interest will Gina get if Gerry pays Gina after 6 months?

1 answer

To calculate the interest that Mary will receive for the loan to Gerry after 6 months at an interest rate of 10 percent per year, we can use the formula for simple interest:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]

Where:

  • Principal = $300
  • Rate = 10% per year = 0.10 (as a decimal)
  • Time = 6 months = 0.5 years

Now, substituting the values into the formula:

\[ \text{Interest} = 300 \times 0.10 \times 0.5 \]

\[ \text{Interest} = 300 \times 0.05 \]

\[ \text{Interest} = 15 \]

So, the interest that Mary will receive from Gerry after 6 months is $15.