How much interest is earned in 10 years invested on $5,000 invested at an interest rate of 7% per year?

Question

Another problem that I am having difficulty solving.

Answer 1

We need to know if it is simple interest

$5,000 (0.07) = $350 per year or a total of
$5000 + 10 ($350) = $5000+$3500 = $8,500

OR if it is compounded interest
     and if it is compounded each year,
     twice a year, or each month, or daily
     or at some other rate.