Ciara deposits $100 into a savings account that earns 5% simple interest per year.

How much interest will Ciara earn in 1 year?

The formula for simple interest is:

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

Where:
- $I$ is the interest earned,
- $P$ is the principal (initial amount),
- $r$ is the annual interest rate (as a decimal),
- $t$ is the time in years.

For Ciara:
- $P = 100$,
- $r = 5\% = 0.05$,
- $t = 1$ year.

Substituting these values into the formula:

\[
I = 100 \times 0.05 \times 1 = 5
\]

Thus, Ciara will earn **$5** in interest in 1 year.

Would you like further details on simple interest or related topics?

Here are 5 related questions:
1. How would the interest change if the rate were 6% instead of 5%?
2. What will be the total amount in Ciara's account after 1 year?
3. How does simple interest differ from compound interest?
4. How much interest would Ciara earn in 3 years under the same conditions?
5. How would the interest change if the principal were $200 instead of $100?

**Tip:** In simple interest, the interest is only calculated on the original principal amount, not on any accumulated 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 Ciara earns on a $100 deposit at 5% per year. This simple interest problem uses the formula I = P × r × t and is suitable for Grades 5-7. Get step-by-step instructions and explore related questions.

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