Answer: the amount of interest that he would earn is $90.
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount of money deposited.
P represents the principal or amount of money deposited.
R represents interest rate on the deposit.
T represents the duration of the deposit in years.
From the information given,
P = $4500
R = 2%
T = 1 year
Therefore,
I = (4500 × 2 × 1)/100
I = $90
