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Art [367]
3 years ago
14

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

s?
Mathematics
1 answer:
Ann [662]3 years ago
4 0
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
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