Answer:
$420
Step-by-step explanation:
The formula for simple interest is i = prt, where p is the principal, r is the annual interest rate expressed as a decimal fraction, and t is the number of years.
Here p = $2,000, r = 0.07 and t = 3 yr, and so
i = ($2,000)(0.07)(3) = $420 was the amount of interest earned.
