**Question:**

**The simple interest on a loan of $5,000 borrowed for 2 years at an annual rate of 5% is?**

**Options:**

A) $250

B) $500

C) $750

D) $1000

**Answer:**

**A) $250**

**Solution:**

Simple Interest = Principal x Rate x Time = $5,000 x 5% x 2 years = $250.