An deposited $100 in a savings account that offers a 5% interest rate. How much interest will he eam after 1

year?

A. $5

B. $50

C. $105

D. $500

Answer is A. $5 if it is just the interest itself!

Equation: I=P • r • t

P is the principle amount aka $100

r is the rate aka %5 or. 05

t is the time in years aka 1

So to get the simple interest, use this equation: P=100•0.05•1

Which then equals your answer, $5!

The answer would be a think about it like this 10 percent of 100 is obviously 10 so just cut that in half and it would be five