For the answer to the question above,
The simple interest formula is I = P * r * t
P is the principal (2,000)
r is the interest rate (7% or 0.07)
t is the time (5)
2000 * 0.07 * 5 = 700
$700.00 is the interest
Joe has to pay $700.00 in interest.
I hope this helps
