Question

Suppose you are offered a job that lasts one month, and you are to be very well paid. Which of the following methods of payment is more profitable for you?

Answer 1

Question is Incomplete, Complete question is given below.

Suppose you are offered a job that lasts one month. Which of the following methods of payment is more profitable for you?

I. One million dollars at the end of the month.

II. 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.

Answer:

Option II is more profitable.

Step-by-step explanation:

Solution:

By Option I:

Amount we will get every month = $1,000,000

Now By Option II.

Given:

Amount we will get every month = $2^{n-1}$

Now we will consider the month which has least number of days in a month which is February which has 28 days.

So we can say that.

Amount we will get every month = $2^{27-1}=2^{26}= 1, 34,217,728\ cents = \ 1,342,177.28$

$1,342,177.28 > $1,000,000

Hence Option II is more profitable.