Abbey wants to borrow $5,000 for one year. At the end of the year, she is required to pay the lender the amount borrowed plus interest. Abbey pays the lender $5,450. How much interest did Abbey pay?

Interest is the total amount repaid minus the amount borrowed. Subtract $5,000 from $5,450: $5,450 − $5,000 = $450. Abbey paid $450 in interest, choice C.

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