Mr mitchell deposited $40000 in a bank and earned simple interest at 7% annum for two years

Simple interest is calculated according to:

I = Prt    where P is the amt deposited, r is the interest rate expressed as a decimal, and t is the time

So we have

I = (40000)*(.07)*(2)= $5600

The total amount accumulated after two years = 40000 + 5600 = $45600