Final answer:
Chelsey will earn $20.25 in simple interest after depositing $450 at an interest rate of 4.5% for 1 year, using the simple interest formula.
Step-by-step explanation:
To calculate the simple interest Chelsey will earn after 1 year, we use the simple interest formula: Interest = Principal × Rate × Time.
For Chelsey's deposit, the principal (initial amount) is $450, the rate is 4.5% (or 0.045 when converted to a decimal), and the time is 1 year.
Using the formula, we calculate the interest as follows:
$450 × 0.045 × 1 = $20.25
So, Chelsey will earn $20.25 in simple interest after 1 year.