Sunday, April 5, 2009

Linear Income vs exponential income




There is story which goes like this:


A multi-millionaire celebrating his birthday, wanted to give his 2 teenage sons each a present.


He said to them," there are 2 type of presents which I have prepared to give you on my birthday, however, you 2 have to work for it." Pointing to his estate, he continued, "There are 40 young trees at the nursery, I want each of you to take 20 young trees and finish planting them."


"First present, for every tree you plant, I will give you $100,000 each."


"and second present, for the 1st tree you plant, I will give you $10, the second tree you plant I will double the amount that is $20 and the third tree you will get $40 and so on , each tree you plant the amount will be doubled up."


"Since you are the younger one I will let you choose" , said the father to his 2nd son.


Without much thought, the younger brother straight away choose the 1st present (the $100,000 for each tree), leaving the second present to his elder brother.


How much will each them get after finished planting the trees ?
Please click the chart on top to enlarge





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