What’s Wrong With Growing Rich Slowly?

Doubling Down
Lucy is a college student looking for a summer job. She is offered a position for 30 days of work. Her prospective employer gives her the following salary options:

1) Upon completion of 30 days of satisfactory employment, she will be paid $5 million.
2) She will begin employment with an initial salary of one penny a day and her salary will double each day for 30 days.

Which option should she choose?

By choosing the second option, her total pay for 30 days will be $10,737,418. Even as late as day 21, her daily salary is only $10,485. On day 29 her cumulative salary finally exceeds $5 million. And her pay on day 30 will be $5,368,709. Once again, that last doubling makes a huge difference.

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