To calculate the simple interest earned in 1 year, we use the formula for simple interest:

$I = P \times r \times t$

Where:

• $I$ is the interest earned.
• $P$ is the principal amount (the initial deposit).
• $r$ is the annual interest rate (in decimal form).
• $t$ is the time the money is invested or borrowed for, in years.

In this case:

• $P = 100$ (the initial deposit).
• $r = 0.05$ (5% interest per year, converted to decimal).
• $t = 1$ year.

Now, calculating the interest:

$I = 100 \times 0.05 \times 1 = 5$

So, Ciara will earn $5 in interest after 1 year.

Would you like further details or clarification? Here are 5 related questions for practice:

1. How much interest would Ciara earn in 3 years?
2. What would be the total amount in the account after 1 year, including interest?
3. If the interest rate increased to 6%, how much would Ciara earn in 1 year?
4. How much would Ciara earn in 2 years if she deposited $200 instead of $100?
5. What is the difference between simple interest and compound interest?

Tip: When working with simple interest, the interest amount remains the same each year because it is calculated only on the principal, not on the accumulated interest.