https://file.aiquickdraw.com/mathbot/file/1727205617509ublo9jta.jpg

The problem in the image involves simple interest. The formula for calculating simple interest is:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest,
- $P$ is the principal (initial amount of money),
- $r$ is the interest rate (expressed as a decimal),
- $t$ is the time the money is invested or borrowed for, in years.

From the problem:
- Principal $P = 100$ dollars,
- Interest rate $r = 5\%$ per year, which is $0.05$ as a decimal,
- Time $t = 1$ year.

Now we can calculate the interest:

\[
I = 100 \times 0.05 \times 1 = 5 \, \text{dollars}.
\]

Thus, Ciara will earn **$5** in interest after 1 year, so the correct answer is **B. $5**.

Do you need more details on this or have any questions?

Here are 5 questions to expand your understanding:
1. What would the interest be if the principal was $200 instead of $100?
2. How would the interest change if the rate was 7% instead of 5%?
3. How does compound interest differ from simple interest?
4. What if the investment period was 2 years instead of 1 year?
5. How would the result differ if the interest was calculated monthly?

**Tip:** Always convert percentage rates to decimals when calculating interest!

Ciara deposits $100 into a savings account that earns 5% simple interest per year. How much interest will Ciara earn in 1 year?

Learn how to calculate the simple interest earned on a $100 deposit with a 5% annual interest rate. This example demonstrates the application of the simple interest formula, making it ideal for students in Grades 6-8.

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