https://file.aiquickdraw.com/mathbot/file/1727193130193an9guufn.jpg

To solve this question, we can use the formula for simple interest:

\[
\text{Interest} = P \times r \times t
\]

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

From the problem:
- $P = 100$ dollars,
- $r = 5\% = 0.05$,
- $t = 1$ year.

Now calculate:

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

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

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

Would you like more details or have any questions? Here are 5 related questions to expand your understanding:

1. How would the interest change if the rate was 10% instead of 5%?
2. What is the total amount in the account after 1 year?
3. How much interest would Ciara earn in 2 years at the same rate?
4. How does compound interest differ from simple interest in this scenario?
5. If the principal was $200, how much interest would Ciara earn in 1 year?

**Tip**: Always double-check whether the interest is simple or compound, as it affects the total earnings over time.

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 using the formula: Interest = Principal × Rate × Time. This example shows how much interest Ciara earns on a $100 deposit at a 5% annual interest rate. Suitable for Grades 5-7.

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