Wednesday, January 17, 2007

You do the Math

You do the Math

You really have to think, research, and know your investment options before you go diving into something blindfolded. To illustrate this, pick the offer below that seems better:

1. I'll give you $1,000 a day for 30 days.

2. I'll give you a penny on day one and then double your money every day for the rest of the 30-day month.

So which would you pick?

Well, some of you might think this is just another trick question, and really don't know what to pick. Other may have heard this one before, while some are saying I want my $30,000 screw that penny stuff.

Well, let's just do the math shall we. The first option plays on our impatience, because it takes no time at all to do the math on it: You'll have $30,000 at the end of the month. The second option doesn't seem so great at first glance, plus it takes time to do the math. But it'd be time well spent: Choose the second option and you'd have more than $5 million at the end of a 30-day month.

No comments: