Tim wants to invest some money that his grandmother gave him. He has $$2000$ and can put it in an account with simple interest or an account with compound interest.  

1. The simple interest account has an interest rate of $10\%$. With this interest rate, what is the total amount in the bank after 5 years?

   Hint (a):

   Add the interest he earns to his initial principal to find the total amount he would have after 5 years.

   More Help (a):

   $I = ($2000)(.1)(5 \text{years})$
   $I = $1000$

   Answer (a):

   $\text{Total} = $2000 + $1000 = $3000$

2. The compound interest account is also for 5 years (compounded yearly), but it has an interest rate of $8\%$. Find the total amount that he would have in this account.

   Hint (b):

   $A = 2000(1 + 0.8)^5$

   More Help (b):

   $(1.08)^5 = 1.469$

   Answer (b):

   $A = $2000 (1.469) = $2938.66$

3. Which account is a better investment?

   Hint (c):

   Which account has more money after 5 years?