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.

1st year; 4.5% of $1,250 is $56.25.
$1250 + $56.25 = $1306.25
Ethan’s balance would be $1306.25.

2nd year; 4.5% of $1306.25 is $58.78
$1306.25 + $58.78 = $1365.03
Ethan’s balance would be $1365.03

After 2 years, the total amount of interest would be $56.25 + $58.78 which is $115.03