What would you choose: $5 million today or $0.01 that doubles daily for one month?
my-financial-wealth.com 
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.
- 0.01*2= 0.02
- 0.02*2= 0.04
- 0.04*2=0.08
- 0.08*2=0.16
- 0.16*2=0.32
- 0.32*2=0.64
- 0.64*2=1.28
- 1.28*2=2.56
- 2.56*2=5.12
- 5.12*2=10.24
- 10.24*2=20.48
- 20.48*2=40.96
- 40.96*2=81.92
- 81.93*2=163.84
- 163.84*2=327.68
- 327.68*2=655.36
- 655.36*2=1,310.72
- 1,310.72*2=2 621.44
- 2,621.44*2=5,242.28
- 5,242.28*2=10,485.76
- 10,485.76*2=20,971.52
- 20,971.52*2=41,943.04
- 41,943.04*2=83,886.08
- 83,886.08*2=167,772.16
- 167,772.16*2=335,544.32
- 335,544.32*2=671,088.64
- 671,088.64*2=1,342,177.28
- $1,342,177.28*2=$2,684,354.56
- $2,684,354.56*2=$5,368,709.12
- $5,368,709.12*2=$10,737,418.2
- $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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Well you have to read how the whole story ends. There is a moral in it about when and when not to be a smart ass !!
Lol I knew the answer to this even before I reading go for the 0,01. The legend about the King that wanted to reward his servant and all servant asked was one grain of rice to be doubled everyday as it would be placed on every square of a chess board to feed his family. Very clever but what the King did after he realised the significance of his promise to the servant was even more profound 😀 https://www.mathscareers.org.uk/the-rice-and-chessboard-legend/
Wow. I’ve never heard about this story. Great story to write about too 🙂
Oh my!!!.
Very interesting