Steve has a bank account that earns 10% interest every year. He puts $100 in it, and then 10 each year. How much money is in it after two years? Give me reasons, before answering the question
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After one year it earns $10 in interest because 100 x .1 = 10. It has $120 in it after a year because 100 + 10 + 10 = 120. In the second year it earns $12 in interest because 120 x .1 = 12. In the second year it has $142 in it because 120 + 12 + 10 = 142. So the final answer is 142.
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