Chapter 12.3, Problem 105AYU

To determine

To find: The amount paid after $22\text{days}$ , the amount paid for ${22}^{\text{nd}}$ work day and risk if a person take the job offer.

Explanation of Solution

The amount paid after $22$ days is calculated as,

  $\begin{array}{c}{S}_{22}=\left(0.01\right)\frac{\left(1-2^{22}\right)}{1-2}\\ =41943.03\end{array}$

So, the individual get $\$414943.03$ if worked 22 days.

The amount paid on ${22}^{\text{nd}}$ day is calculated as,

  $\begin{array}{c}{a}_{22}=0.01{\left(2\right)}^{22-1}\\ =20971.52\end{array}$

So, the individual will get $\$20971.52$ on the ${22}^{\text{nd}}$ day.