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mitosuki
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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
mitosuki Group Title
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

moneybird Group TitleBest ResponseYou've already chosen the best response.2
Choice 1: amount 100 000 000 Choice 2: amount: 0.01 (4)^(181) Lottery winner should choose the second choice
 2 years ago

mitosuki Group TitleBest ResponseYou've already chosen the best response.0
Oh I see, and the amount of choice 2 is 171,798,691.84?
 2 years ago

matt101 Group TitleBest ResponseYou've already chosen the best response.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

moneybird Group TitleBest ResponseYou've already chosen the best response.2
check with a calculator
 2 years ago

mitosuki Group TitleBest ResponseYou've already chosen the best response.0
Thank you so much!
 2 years ago
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