1. **State the problem:** Mrs. Baxter deposits 2000 on an account that earns 5% simple interest. We want to find how much her investment is worth after 8 years. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is the interest earned, $P$ is the principal (initial deposit), $r$ is the annual interest rate (as a decimal), and $t$ is the time in years. 3. **Calculate the interest:** $$I = 2000 \times 0.05 \times 8$$ $$I = 2000 \times 0.4$$ $$I = 800$$ 4. **Calculate the total amount:** $$A = P + I$$ $$A = 2000 + 800$$ $$A = 2800$$ 5. **Answer:** Mrs. Baxter's investment is worth **2800** after 8 years.