Joe would be paying $700 in 5 years time. Explanation: From the Formula: I = Pin where : I - interest P - principal i - the interest rate n - the number of years I = Pin, plug in the given data as provided in the problem. P = $2,000 i = 0.07 per year n = 5 years I = ($2,000)(0.07/year)(5 years) = ($2,000)(0.07)(5) = $700