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

How much interest will Ciara earn in 1 year?
A.$1
B.$5
C.$10
D.$50

The formula for calculating simple interest is:

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

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

For this problem:
- $P = 100$,
- $r = 0.05$ (since 5% = 0.05),
- $t = 1$ year.

Now calculate the interest:

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

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

The correct answer is **B. $5**.

Would you like more details on simple interest or another explanation?

Here are 5 related questions to explore further:
1. How is simple interest different from compound interest?
2. How much interest would Ciara earn in 3 years with the same conditions?
3. What would the interest be if the rate were 7% instead of 5%?
4. If Ciara deposits $200 instead of $100, how would the interest change?
5. What formula is used to calculate the total amount in the account after interest?

**Tip:** Always convert percentages to decimal form before using them in formulas.

Ciara deposits $100 into a savings account that earns 5% simple interest per year. How much interest will Ciara earn in 1 year? A.$1 B.$5 C.$10 D.$50

Learn how to calculate the simple interest on Ciara's $100 deposit at a 5% interest rate per year. This problem demonstrates the use of the simple interest formula I = P × r × t and is ideal for students in Grades 6-8.

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