Suppose that you won the top prize from a game show and are given two options. The first option is a cash gift of $10,000 and $1,000 per day for the next 7 days. The second option is a cash gift of 1 cent (or $0.01) that grows tenfold each day for 7 days. Which option would you choose?

Question

Mathematics

Jocelyn

21 May, 12:47

Suppose that you won the top prize from a game show and are given two options. The first option is a cash gift of $10,000 and $1,000 per day for the next 7 days. The second option is a cash gift of 1 cent (or $0.01) that grows tenfold each day for 7 days. Which option would you choose?

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Answers (1)

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Roderick Koch · Answer 1

Answer: The second option.

Step-by-step explanation:

By the end of the 7 days you will have collected $100,000 but if you choose the first option you'd only end up with $17,000.