Question

Problem 24

Answer 1

Given information

Given information is that 

Suppose you are offered a job that lasts for one month. with two methods of payment as 

1) One million dollars at the end of the month.

2) One cent on the first day of the month,two cents on the second day , four cents on the third day , and in general , cents on the nth day. Suppose the months is April(30 days). What is the total amount that you would make if you selected method 2 

Step-by-step explanation

Step 1.

Let's Suppose the month has 30 days to begin with. Then the total money gained from option 2 is 

cents 

Just by looking at the last of these numbers , a calculator gives 

cents= 536,870,912 cents = 5,368,709,12 dollars

since,  5,368,709,12 is larger than 1,000,000(the total money gained from option 1), we see that option 2  is preferable.