Quantcast

Got Homework?

Connect with other students for help. It's a free community.

  • across
    MIT Grad Student
    Online now
  • laura*
    Helped 1,000 students
    Online now
  • Hero
    College Math Guru
    Online now

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

mitosuki

A lottery winner must decide between two methods of payment. Choice one is to receive a lump sum of $100,000,000. Choice two is to begin with one cent on day 1, four cents on day 2, 16 cents on day three, and so on until the end of 18 days. Which choice should the lottery winner select? And what is the amount?

  • 2 years ago
  • 2 years ago

  • This Question is Closed
  1. moneybird
    Best Response
    You've already chosen the best response.
    Medals 2

    Choice 1: amount 100 000 000 Choice 2: amount: 0.01 (4)^(18-1) Lottery winner should choose the second choice

    • 2 years ago
  2. mitosuki
    Best Response
    You've already chosen the best response.
    Medals 0

    Oh I see, and the amount of choice 2 is 171,798,691.84?

    • 2 years ago
  3. matt101
    Best Response
    You've already chosen the best response.
    Medals 2

    He should choose the second option. The second option quadruples the previous day's winnings. This happens 17 times over the 18 days, meaning he would get: 0.01*(4^17) ~ $171 798 692, which is more than the first option.

    • 2 years ago
  4. moneybird
    Best Response
    You've already chosen the best response.
    Medals 2

    check with a calculator

    • 2 years ago
  5. mitosuki
    Best Response
    You've already chosen the best response.
    Medals 0

    Thank you so much!

    • 2 years ago
    • Attachments:

See more questions >>>

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.