Dan Cummings - The Running Realtor: The Power of the Penny

A blend of ramblings about Real Estate & Running around New Haven County and the Connecticut Shoreline

The Power of the Penny

Yesterday Broker Maggie dropped a few cents in the comment section of my blog and it reminded me how quickly pennies can add up to Big Bucks. 

The POWER of the PENNY.  I ran into this illustration several years ago at some seminar.  Cannot recall what product they were peddling and never offered up the hundreds of dollars to purchase their program but the penny illustration was very fascinating.

I don't recall all the hype but is was something like this.  If I offered you 1 million dollars today or 1 penny with my 30 day program that teaches you how to double your money everyday for a month which would you take.

Pretty simple, huh?  Day 1 you have a penny, Day 2 it is two cent,  Day 3 it becomes  4 cents. The cash just keeps on doubling for 30 days, after 10 days you have $5.12

Would you take the Penny and double it everyday for a month or the Million Dollars?

12 comments • Dan Cummings - Connecticut's Running Realtor • May 17 2007 03:55PM

Comments

I'll take the doubling penny. Wouldn't that be about $4 mil at the end of 30 days?
Posted by Debi Braulik (Federal Way to Tacoma, WA) (Keller Williams Realty) over 2 years ago

Debi... Good Choice!  Those pennies add up.

DAY-01$0.01
DAY-02$0.02
DAY-03$0.04
DAY-04$0.08
DAY-05$0.16
DAY-06$0.32
DAY-07$0.64
DAY-08$1.28
DAY-09$2.56
DAY-10$5.12
DAY-11$10.24
DAY-12$20.48
DAY-13$40.96
DAY-14$81.92
DAY-15$163.84
DAY-16$327.68
DAY-17$655.36
DAY-18$1,310.72
DAY-19$2,621.44
DAY-20$5,242.88
DAY-21$10,485.76
DAY-22$20,971.52
DAY-23$41,943.04
DAY-24$83,886.08
DAY-25$167,772.16
DAY-26$335,544.32
DAY-27$671,088.64
DAY-28$1,342,177.28
DAY-29$2,684,354.56
DAY-30$5,368,709.12

Posted by Dan Cummings - Connecticut's Running Realtor (Raveis Real Estate) over 2 years ago

OK so somebody has to be different, I would take the million dollars, because I probably would not be disciplined enough to follow the program for 30 days.  You know what they say "a bird in the hand is better than two in the bush."

Posted by George Souto (McCue Mortgage) FHA, CHFA, VA Mortgages CT. over 2 years ago
George... Kind of like the theory not to pay extra principle on your mortgage because you can get a better return investing elsewhere.  All these years and I still don't see those double digit gains out of stocks or mutual funds.
Posted by Dan Cummings - Connecticut's Running Realtor (Raveis Real Estate) over 2 years ago

I'd take the pennies, George can have the million.

Sandra

Posted by Guilford Connecticut Real Estate Agent, Sandra Cummings (William Raveis Real Estate) over 2 years ago

Sandra... Thought you said I had enough of them piled up in your office....

 

Posted by Dan Cummings - Connecticut's Running Realtor (Raveis Real Estate) over 2 years ago
Thank you Sandra, you just became my favorite person :)
Posted by George Souto (McCue Mortgage) FHA, CHFA, VA Mortgages CT. over 2 years ago
I use to bribe my kids with this - I would tell them I would double their allowance each day for every day they kept their room perfectly clean - I never once had to pay more than the basic allowance - thank goodness
Posted by Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon (RE/MAX Sunset Realty) over 2 years ago
This is pretty cool Dan! I'll share this with the other agents in the Office! I still think I'd take the million and be on down the road while your collecting the pennies.
Posted by Danny Smith (DISCOVER TEXAS HOMES) over 2 years ago
Thanks for the reminder on this one.  It was one of my Dad's favorite stories.  My Dad wasn't educated, but he was so smart.  He was a real hero in my eyes.  Still is.  Einstein thought one of the most facinating inventions in the world was compound interest.  You story perfectly illustrates why he thought so.
Posted by Laguna Homes|Laguna Condos| Laguna Real Estate|Marlene Bridges (Sherman Smith & Associates) over 2 years ago
I feel very enterprising.  I'll take the million...AND the penny!
Posted by Steven Shewell, The Mortgage Maverick (Primary Residential Mortgage, Inc.) over 2 years ago
Dan, so sorry I missed this!  I actually inspired someone!  lol  I would have gone for the pennies, but not because I knew the answer but because I would think you were trying to trick me into choosing what seemed like a bigger sum. 
Posted by Palmetto Bay | Redland Real Estate | Maggie Dokic (Prudential Florida Realty) over 2 years ago

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