Suppose you go to work for a company that pays one penny on the first day, 2 cents on the second day, 4 cents on the third day and so on.

Question

Suppose you go to work for a company that pays one penny on the first day, 2 cents on the second day, 4 cents on the third day and so on.

Hint: use an= a1 (r)^n-1 and Sn= a1 (1-r^n) / 1 - r

A. If the daily wage keeps doubling, what would your income be on day 31? Give your answer in dollars NOT pennies.

Income on day 31 = $ __________

B. If the daily wage keeps doubling, what will your total income be for working 31 days? Give your answer in dollars NOT pennies.

Total Income for working 31 days = $ _________

Answer 1

a31 = a1r^(n-1) = 1(2^30) = $21,474,836.48 = income on day 31

s31 =a1(1-2^31)/(1-2)

=$42,949,672.95 = sum of income from all 31 days = twice the income from day 31