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, three cents on day 2, nine cents on day three, and so on until the end of 22 days.

Part 1: Which choice should the lottery winner select? (4 points)

Part 2: Using complete sentences, explain the procedure taken to answer this question. (4 points)

Question

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, three cents on day 2, nine cents on day three, and so on until the end of 22 days. 

Part 1: Which choice should the lottery winner select? (4 points) 

Part 2: Using complete sentences, explain the procedure taken to answer this question. (4 points)

ja1 · Answer

Choice 1:
100.000.000

Choice 2:
0.01 (4)^(18-1)

ja1 · Answer

Choice 2 would be 171,798,691.84

ja1 · Answer

So he should pick choice 1