Question 547824
We know that the simple interest formula is I=Prt where I is the interest, P is the principal amount, r is the interest rate and t is the number of time periods 

In our case, the principal is 5000, the interest rate is 10%=0.1, and there are 2 years (and since the interest is ANNUALLY, this is two time periods).  We just need to sub this into the above formula and solve for I
{{{I=Prt}}}
{{{I=5000*0.1*2}}}
{{{I=1000}}}

So she ended up paying $1000 in interest.