Your kind aunt tells you that you can choose one of the following:
Option 1: During a period of 5 days, she will give you 3 cents the first day, give you double that the second day, give you double the second on the third day and so on.
Option 2: She will give you $10.
Which option would give you more money, 1 or 2?

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Question

Your kind aunt tells you that you can choose one of the following: 
Option 1: During a period of 5 days, she will give you 3 cents the first day, give you double that the second day, give you double the second on the third day and so on.
Option 2: She will give you $10.
Which option would give you more money, 1 or 2?
 
		
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jim_thompson5910 · Answer

Option 1:

Day 1: 3 cents

Day 2: 2*3 = 6 cents

Day 3: 2*6 = 12 cents

Day 4: 2*12 = 24 cents

Day 5: 2*24 = 48 cents

So over the course of 5 days, option 1 will give you 3+6+12+24+48 = 93 cents

This is close to $1, but nowhere near $10. It's far less.

So option 2 is a much better option.