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
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Earn : obtain (money) in return for labor or services
Invest : expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture
Balance : an even distribution of weight enabling someone or something to remain upright and steady
Calculate : determine (the amount or number of something) mathematically
Interest : the state of wanting to know or learn about something or someone
Range : the area of variation between upper and lower limits on a particular scale
Account : a report or description of an event or experience
Previous : existing or occurring before in time or order
Consider : think carefully about (something), typically before making a decision