A savings certificate starts at 2000 dollars and pays 5% simple interest per year for 10 years. Estimate the total as between 2500 and 3500 dollars, then choose the exact total.

Explanation

Simple interest adds 2000 × 0.05 = 100 each year, so ten years add 1000 and produce a 3000 dollar total. Choosing the repeated-growth total would compound the balance despite the stated simple-interest mechanism.