https://file.aiquickdraw.com/mathbot/file/1728403124714xgfnq7sn.jpg

To solve the problem, we can apply the formula for simple interest:

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

Where:
- $ I $ is the interest earned,
- $ P $ is the principal (initial deposit),
- $ r $ is the interest rate (in decimal form), and
- $ t $ is the time in years.

In this case:
- $ P = 100 $ (Ciara deposits $100),
- $ r = 5\% = 0.05 $ (the interest rate is 5% per year),
- $ t = 1 $ year (we are calculating for 1 year).

Now, calculate the interest:

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

So, the interest Ciara will earn in 1 year is **$5**.

The correct answer is B: $5.

Would you like any further details or have any questions?

Here are 5 related questions to consider:
1. How would the interest change if the interest rate was 7% instead of 5%?
2. What would be the total amount in Ciara's account after 2 years at 5% interest?
3. How is simple interest different from compound interest?
4. If Ciara wanted to double her investment, how many years would it take with this interest rate?
5. What is the formula for compound interest and how does it differ from the simple interest formula?

**Tip**: Always ensure you convert the percentage to a decimal when working with interest rate formulas.

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 simple interest on a $100 deposit with a 5% interest rate using the formula I = P × r × t. This problem is suitable for students in Grades 5-7 and covers fundamental concepts of percentages and basic arithmetic.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation