What would you rather

Please vote and not comment any further than your choice but not the reason.

Scenario - If you were given a choice to receive five million dollars in one month or a cent and I doubled it every day for 30 days which one would you choose?

 

Have you been reading the "slight edge"?

 

Nah I just remembered it when I was reading this post

https://propertychat.com.au/communi...-help-with-thought-processes.5241/#post-91998

 

Interesting experiment!

 

http://www.singularitysymposium.com/exponential-growth.html

 

Without doing the calcs, 1 cent for sure.
This has been referenced to many times as a way of displaying the power of compounding.

 

What's that parable about the grains of rice and a chess board?

 

2E63

 

$5 million.

I understand the power of compound, and the text book result from $1 per day , compounding may win out, but it would take years to catch up, and bills need to be paid, y'know.....$5million is more than most people will earn from 40 working years. having that as a lump sum is a no brainer.

Reinvested at just 3% returns, it's 150K income for life without even touching the capital. 4% is 200K. 5% is 250K. In other words, over 20 years, with 5% returns, the real worth is $10 Million.

And I think you could do quite a bit better than 5%.

 

I think the more interesting question is could you do more having the cash upfront at day 1 as opposed to waiting 30 days for your pennies to add up

 

It's a bit like the old grain of rice doubled on each part of a chess board, I would take the 1c, the difference would not actually be that much though with it being only 30 days.

Everyone posting about taking the lump sum and investing, the period is only 30 days, how much money will you make from your 5 mill in 30 days?

 

Or 29 days. 100% per day is pretty good compounding!

GP

 

I have the patience to wait 30 days for my huge payout.

 

Just ran some calcs on this and the difference in favour of the 1C is 7.37%, sounds low but that is over a 30 day period, this nets out to an annual growth of 89.72%

It's pretty huge

 

If you work with the question in the first post... but the poll question doesnt say anything about doubling though.

 

1c/day doubled for 30days = $5,360,000

Unless my maths is wrong.

I doubt you could generate 7%+ in the first month.

 

So really all those 1 centers only have 30 cents based on the poll question

 

Since you've blabbed the answer; $5,368,709.12. It's not really that much of a difference. Should have made it 31 days, that is more mind blowing.

 

Yep!