Johnny invested $1000 in savings account that yields 2% interest annually. How much will Johnny's investment be worth in 10 years?

Calculate the interest in a year

Multiply the annual percentage of interest by the investment to find the interest.

interest in a year = 2% * 1,000

interest in a year = 0.02 * 1,000

interest in a year = 20

The annual interest is $20

Calculate the interest after 10 years

Multiply the annual interest by 10

interest 10 years = 20 * 10

interest 10 years = 200

The sum of interest after 10 years is $200

Find total investment

investment = first investment + interest in 10 years

investment = 1,000 + 200

investment = 1,200

The investment will be worth $1,200 in 10 years