In some unspecified time in the future, you will have seen the query, “Would you relatively have a penny that doubles every day for a month or 1 million {dollars}?” You could be questioning whether or not the choice you’d instinctively select is the most suitable choice. Luckily, you may determine it out with a bit of math. Should you needed to choose between a penny that doubles every day for a month or 1 million {dollars}, right here’s what you could know.

A Penny That Doubles Every Day for a Month or 1 Million {Dollars}

The difficult query about which possibility you’d take is definitely primarily based on an Indian fable. The “One Grain of Rice” fable – because it’s usually referred to – includes a raja who was preserving rice from his individuals. A village lady noticed rice falling that was supposed to go to the raja, and, in return for her good deed of gathering it and giving it to the raja, she was provided a reward.

The lady initially requested for one grain of rice. When the raja scoffed, she altered her request to 1 grain of rice that doubles every day for thirty days. The raja accepted, solely to find that the top sum was fairly sizeable.

In lots of circumstances, an individual’s first intuition when requested to decide on between a penny that doubles every day for a month or 1 million {dollars} is to take the million. Primarily, it’s as a result of $1,000,000 and $0.01 are so vastly completely different, making it seem just like the penny possibility couldn’t catch up.

Nevertheless, by going with the penny as a substitute, you truly come out dramatically forward. Right here’s the complete breakdown by day:

Day 1 – 10

Day 11 – 20

Day 21 – 30

Finally, selecting the penny results in greater than 5 instances the million-dollar various. Many take into account this a lesson of the ability of investing and long-term financial development, exhibiting simply what might occur should you guarantee that your cash is working for you.

Should you had to decide on a penny that doubles every day for a month or 1 million {dollars} earlier than studying the article above, what would you’ve chosen? Are you stunned that the penny places you forward, or did you already know that was the case? Share your ideas within the feedback beneath.

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Tamila McDonald is a U.S. Military veteran with 20 years of service, together with 5 years as a army monetary advisor. After retiring from the Military, she spent eight years as an AFCPE-certified private monetary advisor for wounded warriors and their households. Now she writes about private finance and advantages applications for quite a few monetary web sites.