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?
How much does it earn in one year? ** After one year it earns $10 in interest because 100 x .1 = <<100*.1=10>>10
How much does it have after a year? ** It has $120 in it after a year because 100 + 10 + 10 = <<100+10+10=120>>120
How much does it earn in the second year? ** In the second year it earns $12 in interest because 120 x .1 = <<120*.1=12>>12
How much does it have after two years? ** In the second year it has $142 in it because 120 + 12 + 10 = <<120+12+10=142>>142
#### 142