$5,000 is accrued in interest on an investment for 2 years with simple interest yielding 2% annually. How much was invested? O $125,000.00 O $10,416.67 O $250,000.00 O $117,500.00

To find the principal amount, we use the formula for simple interest:
I = P \cdot r \cdot t

Where:
- \(I\) is the interest ($5000$)
- \(P\) is the principal (unknown, which we denote as \(x\))
- \(r\) is the annual interest rate ($0.02$)
- \(t\) is the time in years ($2$)

Plugging in the values:
5000 = x \cdot 0.02 \cdot 2

Simplify the equation:
5000 = 0.04x

Solve for \(x\) (the principal):
x = \frac{5000}{0.04} = 125,000

Thus, the amount invested was:
\boxed{125,000}