Answer:
$200
Step-by-step explanation:
Simple interest is the same value of interest each year. It is based on the original value. The original value here is $5000.
You must find 2% of the $5000 dollars. This is 0.02 * 5000, or $100.
The question asks for the value after two years, so you must double this to $200.
The question asks how much interest he is paid, which does not include the original $5000. The answer is therefore $200.
