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Penny Investment: On July 1, 2018, you were awarded a penny. If this penny is doubled...

Penny Investment:

On July 1, 2018, you were awarded a penny. If this penny is doubled every day for 31 days;

1. what will be the value of your investment on July 8, 2018?

2. what will be the value of your investment on July 15, 2018?

3. what will be the value of your investment on July 18, 2018?

4. what will be the value of your investment on July 28, 2018?

5. what will be the value of your investment on July 31, 2018?

Solutions

Expert Solution

1)

Value on July 8, 2018 = 1 + 2 + 22 + 23 + 24 + 25 + 26 + 27  

Value on July 8, 2018 = 255 pence ( $ 2.55)

______________________________________________________________

2) Value of your investment on July 15, 2018 = 1 + 2 + 22 + 23 + 24 + 25 + 26 + 27  + 28 + 29 + 210 + 211 + 212 + 213 + 214

Value of your investment on July 15, 2018 = 32767 pence ( $ 327.67)

__________________________________________

3) Value of your investment on July 18, 2018 = 1 + 2 + 22 + 23 + 24 + 25 + 26 + 27  + 28 + 29 + 210 + 211 + 212 + 213 + 214 + 215 + 216 + 217

Value of your investment on July 18, 2018 = 262143 pence ( $ 2,621.43)

__________________________________________________________________

4) Value of your investment on July 28, 2018 = 1 + 2 + 22 + 23 + 24 + 25 + 26 + 27  + 28 + 29 + 210 + 211 + 212 + 213 + 214 + 215 + 216 + 217 + 218 + 219 + 220 + 221 + 222 + 223 + 224 + 225 + 226 + 227

Value of your investment on July 28, 2018 = 268435455 pence ( $ 2,684,354.55)

___________________________________________________________________

5) Value of your investment on July 31, 2018 =  1 + 2 + 22 + 23 + 24 + 25 + 26 + 27  + 28 + 29 + 210 + 211 + 212 + 213 + 214 + 215 + 216 + 217 + 218 + 219 + 220 + 221 + 222 + 223 + 224 + 225 + 226 + 227 + 228 + 229 + 230

Value of your investment on July 31, 2018 =  2147483647 pence ( $ 21,474,836.47)

jeff jeffy answered 1 year ago
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