We have that the formula for the simple interest is the following:
[tex]A=P(1+rt)[/tex]
Where A is the total amount, P is the principal amount, r is the interest and t is the periods of time
In this case, we have the following:
[tex]\begin{gathered} P=10,000 \\ r=2\%=0.02 \\ t=5 \\ \Rightarrow A=10000(1+0.2\cdot5)=11000 \\ A=\$11,000 \end{gathered}[/tex]
therefore, the total amount at the end of 5 years is $11,000, so this means that you earn $1000 of interest after five years
