Who Wants To Be a Millionaire?

Who Wants To Be a Millionaire?A Lesson in Compound InterestA wealthy businessman approaches you and your friend with a job offer. He says the job is only for 30 days and you will be paid at the end. You and your friend must choose today how you will be paid. You can choose to be paid a million dollars at the end of the 30 days, or you can be paid one penny the first day, two pennies the second day, four pennies the third day, and it will continue to double the entire 30 days. You choose the million dollars! Your friend chooses the penny. At the end of week one: DayAmount paid1$0.012$0.023$0.044$0.085$0.166$0.327$0.64Total$1.27Youre thinking your friend made the bad choice, arent you? End of Week Two: DayAmount paidTotal from week one$1.278$1.289$2.5610$5.1211$10.2412$20.4813$40.9614$81.92Total$163.83Your friend can at least pay for his gas now!End of Week ThreeDayAmount paidTotal from week two$163.8315$163.8416$327.6817$655.3618$1310.7219$2621.4420$5242.8821$10,485.76Total$20,971.51Maybe your friend will be ok after all At the end of the thirty days, you and your friend go to the boss to collect the pay. You look at your check. $1,000,000. Six zeroes! You think of all the fun you can have and your good luck. You look at your friend and say, Sorry. Did you at least come close to a million? Your friend is speechless and hands you his check. You cant believe it!The Last Nine DaysDayAmount paidTotal from week three$20,971.5122$20,971.5223$41,943.0424$83,886.0825$167,772,1626$335,544.3227$671,088.6428$1,342,177.2829$2,684,354.5630$5,368,709.12Total$10,737,418.23Your friend earned over $10,000,000! Thats 10 million dollars. Want to see what 10 million dollars in pennies looks like?

Each stack is as long as a regular school bus. If stacked on top of each other, they would reach almost 1000 miles high!Compound interest is the eighth wonder of the world. He who understands it, earns it he who doesnt pays it. Albert Einstein