r2i forum

This is a simple quiz which tests our basic investment skill or in other words tests how our brain compounds. There is only one rule : "Please Do not use Internet or any search engine to find the information".

Please read the options carefully. Option (2) states that "A Penny on Day 1 Only" AND NOT "A penny Every Day". You are allowed to use 'Excel' spreadsheet or a traditional Pen/Pencil & Paper.

Please read the options carefully. Option (2) states that "A Penny on Day 1 Only" AND NOT "A penny Every Day". You are allowed to use 'Excel' spreadsheet or a traditional Pen/Pencil & Paper. So far, majority have chosen a wrong option.

MeraNaseebR2I;9919For second case is the profit being reinvested?

Day 1 is '1' penny, Day 2 is '2' penny and Day 3 is '4' penny and so on. I am not sure what do you mean by 'Profit being reinvested'? Can you please explain.

This is really 5th grade math.

My vote: 2nd option

1st option goves you $ 5368710
2nd option gives you $1073741823.

eeyore;9969This is really 5th grade math.

My vote: 2nd option

1st option goves you $ 5368710
2nd option gives you $1073741823.

Can you attach your excel file for 2nd option?

Option 2:

# of pennies = 2^30 - 1
# of pennies = 1073741823 pennies = $10737418.23

First option gives: 30 * $178,957 = 5.368710 million dollars
Second option gives: 2 ^ (30 - 1) * .01 = 5.36870912 million dollars

So I guess the answer is (c) Both the options above are "almost" the same

PS. I used the MS calculator (scientific option x ^ y) that come with the OS - not the Excel spreadsheet. Is that a bummer ?!?

[QUOTE]Second option gives: 2 ^ (30 - 1) * .01 = 5.36870912 million dollars


If you want the sum of the savings - one cent on day one, two cents on day two etc, then the forumula is:

# of pennies = [ (2^30 ) - 1 ] and not 2 ^ (30 - 1)

This is similar to an old 'Shetty' or 'Bania' joke I heard as a kid. The game no. 7 in here describes the same.

http://www.geocities.com/shishusansar/games/games2.htm