There is this scheme in our townYou buy a certificate containing five names for sh 500. The seller appears last on this list. You are then asked to send another sh 500 to the coordinator of the scheme and sh 1,500 to the person appearing the top of the list. Your total investment comes only shs 2,500. When these monies are paid, you get another five certificates bearing your name at number five on the list. The other people have been moved up one slot each and the person who was at the top removed. Now you sell these papers to five new recruits at sh 500 each. At that point, you recover your sh 2500 , and the numbers begin multiply . When the five certificates with your name at number five are sold, they generate 25 ( 5 x 5) more with you at position four. When these are sold, they produce another 125(25x5) with your name at number three. The next level has 625 (125 x 5) certificates “out there”. Now each of these 3,125 new members will pay you sh 1,500 making at total of sh 4,687,500
2006-10-20
00:32:44
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7 answers
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asked by
Omar
1
in
Investing