What would you choose: $5 million today or $0.01 that doubles daily for one month?

Let me guess the answer: $5 million today. But let’s calculate how much you will lose by not accepting $0.01 that doubles daily.

  1. 0.01*2= 0.02
  2. 0.02*2= 0.04
  3. 0.04*2=0.08
  4. 0.08*2=0.16
  5. 0.16*2=0.32
  6. 0.32*2=0.64
  7. 0.64*2=1.28
  8. 1.28*2=2.56
  9. 2.56*2=5.12
  10. 5.12*2=10.24
  11. 10.24*2=20.48
  12. 20.48*2=40.96
  13. 40.96*2=81.92
  14. 81.93*2=163.84
  15. 163.84*2=327.68
  16. 327.68*2=655.36
  17. 655.36*2=1,310.72
  18. 1,310.72*2=2 621.44
  19. 2,621.44*2=5,242.28
  20. 5,242.28*2=10,485.76
  21. 10,485.76*2=20,971.52
  22. 20,971.52*2=41,943.04
  23. 41,943.04*2=83,886.08
  24. 83,886.08*2=167,772.16
  25. 167,772.16*2=335,544.32
  26. 335,544.32*2=671,088.64
  27. 671,088.64*2=1,342,177.28
  28. $1,342,177.28*2=$2,684,354.56
  29. $2,684,354.56*2=$5,368,709.12
  30. $5,368,709.12*2=$10,737,418.2
  31. $10,737,418.2*2=$21,474,836.4

Possible outcomes:

If in month 28 days than it’s better to take $5 million.

If in month 29 days than it’s better to take $0.01 that doubles every day. You will make $368,709.12 more than if you take $5million.

If in month 30 days that it’s better to take $0.01 that doubles everyday. Total outcome will be 10,737,414.2

If in month 31 days than you will make $21,474,836.4

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