Clint is considering investing his money in a savings account that will earn interest. He has $10,000 to invest. The savings account he is looking at will earn between 3 and 5% interest on the previous year’s balance for each year that he leaves the money in savings.
Clint calculates the range of interest he would earn after the first year. He adds that amount as his interest earned for each following year. Clint thinks that:
- after two years of leaving his money in savings he will have between $10,600 and $11,000
- after three years he will have between $10,900 and $11,500
