Carlo Iznop has an interesting business model for his investment firm. Each client deposits exactly $1000. He gives them 10% return on their investment after 1 year. This profit must be withdrawn. In the first year he had 30 clients. 2 out of 3 withdrew their money at the end of the year. At that time, word spread about this fantastic investment opportunity giving double the normal rate of return, so the total number of investors increased. Over the years his fame spread and the business boomed.

In the fourth year suspicions were raised about the consistently high profits and the police were called.

What is the most probable outcome?

Author: Leslie Green