Steve puts $100 into the bank. Each year he earns 10% interest on the money in the account. How much money will be in the bank after 2 years?
Thoughts? Step-by-step reasoning:
At the end of the first year, there will be $100 * (110 / 100) = $110 in the bank account. At the end of the second year, there will be $110 * (110 / 100) = $121.
Thus, the answer is 121.