Answer :
The simple interest formula is:
[tex]SI=Prt[/tex]where P is the prinipal, r is the interest rate (in decimal form) and t is the time.
Since Louie invested 5000 for three years at a rate of 2.5% he has:
[tex]SI=5000(0.025)(3)=375[/tex]$375 of intetest after 3 years, that is he has a total of $5375. Then he removes $1000, and invest the rest for 4 years at a rate of 4%, then he has:
[tex]SI=4375(0.04)(4)=700[/tex]Therefore she has in total $5075 at the end.