I had heard or read somewhere(it's been so long I really don't remember which) that if you put just a penny into an acount at the bank over the span of 30 or more days, you would end up with a million dollars. Mabybe I'm mistaken, but this just doesn't seem logical to me. What kind of account works best for this? If someone could clear up my confusion, I would greatly appreciate it. Thank you so much in advance for your help.
2007-06-14 09:22:26 · 5 answers · asked by Mike M. 7 in Business & Finance ➔ Personal Finance
its suppose to be possible ,sweetie, if you do put 1 penny in the first day and double that the 2nd day and double that the 3rd day and so on,,you'll end up with 1 million in 30 days..the hard part comes when you're doubling 25,000.00 so the next day you'll be putting in 50,000.00,,,next day 100,000.00...if you have that kind of money to begin with,,what sup?....lol
2007-06-14 15:46:20 · answer #1 · answered by ggmsixer 5 · 0⤊ 0⤋
I know the situation and its not about putting a penny in a bank. The question you pose is do you want a a million bucks now or a penny doubled every day for 1 month? You would chose the penny doubled everyday for 1 month because it would grow to a large sum.
Day 1 = 0.01
Day 2 = 0.02
Day 3 = 0.04
Day 4 = 0.08
Day 5 = 0.16
Day 30 = $10,737,418
2007-06-14 16:29:57 · answer #2 · answered by Jason F 1 · 1⤊ 0⤋
I agree with the $0.01 on day 1 + $0.02 on day 2 answers. Day 28 would pay $1,342,177.28. The total after 30 days would be $10,737,418.23.
Even accounting for compound interest, 1 penny would NEVER earn any interest. At each payment date, your interest, rounded to the nearest penny is added to the account. For a one penny balance, the interest rate would have to be more than 50% in order for the interest to round UP to another penny.
Investing $100 EACH month at 12% would take nearly 39 yrs to reach $1 million dollars. I have confirmed that math several times this week using Excel, but don't recall the exact time required.
2007-06-14 19:32:15 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
What you've heard is that if you put in a penny in on day one, two pennies on day two, four pennies on day three, etc. (with twice as many pennies on each subsequent day), you'd have over ten million dollars at the end of a month. It's the concept of exponents. See the link below for a similar example.
2007-06-14 16:29:05 · answer #4 · answered by Kathryn 6 · 0⤊ 0⤋
Hmm you might be thinking of the old riddle where someone offers you $1000 a day for 30 days or 1 penny which doubles every day for 30 days.
Its just a riddle though, in real life if you put $.01 in a bank account for 30 days you will still have $.01.
P.S. I can't believe I actually just wasted 5 minutes of my life answering that.
2007-06-14 16:30:44 · answer #5 · answered by Joseph T 4 · 1⤊ 0⤋