Final answer:
Karen will earn an interest of $112.50 after 5 years.
Step-by-step explanation:
To calculate the interest earned, we need to use the formula: Interest = Principal amount × Interest rate × Time. In this case, Karen deposits $450 into a savings account with a simple interest rate of 5% per year. After 5 years, the interest earned would be:
Interest = $450 × 0.05 × 5 = $112.50 Karen deposits $450 into a savings account which earns simple interest at a rate of 5% per year. To calculate the interest she will earn after 5 years, we use the formula for simple interest:
I = P × r × t
where:
I is the interest
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal form)
t is the time in years
For Karen's deposit:
P = $450
r = 5% or 0.05 (as a decimal)
t = 5 years
Substituting these values into the formula, we get:
I = $450 × 0.05 × 5
I = $112.50
Therefore, Karen will earn $112.50 in interest after 5 years with her savings account.