5. Ethan put $$ \$ 1,250 $$ into a savings account. The account pays $$ 4.5 \% $$ simple interest on an annual basis. If he does not add or withdraw money from the account, how much interest will he earn after 2 years? Round to the nearest cent. (Example 1)

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Ethan will earn $112.50 in interest after 2 years. To calculate the simple interest earned on an account, you can use the formula: $$ I = P \times r \times t $$ where: - $$ I $$ is the interest earned, - $$ P $$ is the principal amount (the initial amount of money), - $$ r $$ is the annual interest rate (in decimal form), - $$ t $$ is the time the money is invested or borrowed for, in years. In this case: - $$ P = 1250 $$ (the initial amount), - $$ r = 4.5\% = 0.045 $$ (the interest rate in decimal form), - $$ t = 2 $$ (the time in years). Now, plug in the values: $$ I = 1250 \times 0.045 \times 2 $$ Calculating this step-by-step: 1. Calculate $$ 0.045 \times 2 = 0.09 $$. 2. Now multiply by the principal: $$ 1250 \times 0.09 = 112.5 $$. Thus, the interest earned after 2 years is: $$ I = 112.50 $$ So, Ethan will earn **$112.50** in interest after 2 years.

5. Ethan put \( \$ 1,250 \) into a savings account. The account pays \( 4.5 \% \) simple interest on an annual basis. If he does not add or withdraw money from the account, how much interest will he earn after 2 years? Round to the nearest cent. (Example 1)

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5. Ethan put \( \$ 1,250 \) into a savings account. The account pays \( 4.5 \% \) simple interest on an annual basis. If he does not add or withdraw money from the account, how much interest will he earn after 2 years? Round to the nearest cent. (Example 1)

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