Sooner or later, you could have seen the query, “Would you moderately have a penny that doubles every day for a month or 1 million {dollars}?” You could be questioning whether or not the choice you’d instinctively select is the best choice. Fortuitously, you’ll be able to determine it out with somewhat math. In case you needed to decide between a penny that doubles every day for a month or 1 million {dollars}, right here’s what it’s good to know.
A Penny That Doubles Every Day for a Month or 1 Million {Dollars}
The difficult query about which choice you’d take is definitely based mostly on an Indian fable. The “One Grain of Rice” fable – because it’s typically referred to – includes a raja who was retaining rice from his individuals. A village lady noticed rice falling that was supposed to move to the raja, and, in return for her good deed of accumulating it and giving it to the raja, she was provided a reward.
The lady initially requested for one grain of rice. When the raja scoffed, she altered her request to 1 grain of rice that doubles every day for thirty days. The raja accepted, solely to find that the tip sum was fairly sizeable.
In lots of circumstances, an individual’s first intuition when requested to decide on between a penny that doubles every day for a month or 1 million {dollars} is to take the million. Primarily, it’s as a result of $1,000,000 and $0.01 are so vastly completely different, making it seem just like the penny choice couldn’t catch up.
Nevertheless, by going with the penny as an alternative, you really come out dramatically forward. Right here’s the complete breakdown by day:
Day 1 – 10
| 1 | $0.01 |
| 2 | $0.02 |
| 3 | $0.04 |
| 4 | $0.08 |
| 5 | $0.16 |
| 6 | $0.32 |
| 7 | $0.64 |
| 8 | $1.28 |
| 9 | $2.56 |
| 10 | $5.12 |
Day 11 – 20
| 11 | $10.24 |
| 12 | $20.48 |
| 13 | $40.96 |
| 14 | $81.92 |
| 15 | $163.84 |
| 16 | $327.68 |
| 17 | $655.36 |
| 18 | $1,310.72 |
| 19 | $2,621.44 |
| 20 | $5,242.88 |
Day 21 – 30
| 21 | $10,485.76 |
| 22 | $20,971.52 |
| 23 | $41,943.04 |
| 24 | $83,886.08 |
| 25 | $167,772.16 |
| 26 | $335,544.32 |
| 27 | $671,088.64 |
| 28 | $1,342,177.28 |
| 29 | $2,684,354.56 |
| 30 | $5,368,709.12 |
Finally, selecting the penny results in greater than 5 occasions the million-dollar different. Many contemplate this a lesson of the facility of investing and long-term financial progress, displaying simply what may occur when you be sure that your cash is working for you.
In case you had to decide on a penny that doubles every day for a month or 1 million {dollars} earlier than studying the article above, what would you could have chosen? Are you stunned that the penny places you forward, or did you already know that was the case? Share your ideas within the feedback beneath.
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Tamila McDonald is a U.S. Military veteran with 20 years of service, together with 5 years as a navy monetary advisor. After retiring from the Military, she spent eight years as an AFCPE-certified private monetary advisor for wounded warriors and their households. Now she writes about private finance and advantages packages for quite a few monetary web sites.
