Question

Ari deposited $100 in a savings account that offers a 5% interest rate. How much interest will he earn after 1 year?

Answer 1

100 x .05 = $5 for one year

Since it is one year, you'd multiple 5 x 1, but there isn't a need to in this problem.

100 + 5 = $105 total, after the one year.

Answer 2

This is how you would figure this problem out:

100 x .05 = 5

So, he will earn $5 after 1 year.

Hope this helped! :)