\( \$ 5000 \) at \( 6 \% \) for 2 years

When you invest \( \$ 5000 \) at an interest rate of \( 6\% \) for \( 2 \) years, you can calculate the total earnings using simple interest or compound interest. If you use simple interest, the formula is \( I = P \times r \times t \), where \( P \) is the principal amount, \( r \) is the rate of interest, and \( t \) is the time in years. You would earn \( I = 5000 \times 0.06 \times 2 = \$ 600 \), making your total \( 5000 + 600 = \$ 5600 \). Now, if your investment compounds annually, you'll want to use the formula \( A = P(1 + r)^t \). In this case, \( A = 5000(1 + 0.06)^2 \), which gives you \( A = 5000 \times 1.1236 = \$ 5618 \) approximately, showcasing how compounding can boost your investment even over a short term!