You need: a calculator, paper, and (optional) a handful of coins.
A relative offers you a choice for a 30-day summer job: (A) $1000 every day, or (B) 1 cent on day 1, 2 cents on day 2, 4 cents on day 3, doubling each day. On day n, offer B pays 0.01 × 2^(n − 1) dollars.
- Use coins to model the first five days of offer B (1, 2, 4, 8, 16 cents). Which offer looks better so far?
- Write and solve an equation with logarithms to find the first day on which B's daily payment is more than $1000.
- With your calculator, find B's payment on day 30.
- Which offer would you choose?
What to look for: 0.01 × 2^(n − 1) > 1000 means 2^(n − 1) > 100 000, so n − 1 > log 100 000 ÷ log 2 ≈ 16.61. The first whole-number day is day 18 (payment $1310.72). On day 30 the payment is 0.01 × 2²⁹ = $5 368 709.12. Offer A pays $30 000 in total; offer B pays more than $10 million in total. Exponential growth starts slowly and then overwhelms linear growth.