Aunt Lucy’s Letter
Bob has a very rich aunt who is a mathematician. She wrote this letter to Bob:
"Dear Bob,
Now that I am getting on (70 today) I want to give you some of my money, I shall
give you a sum each year, starting now. You can choose which of the following
schemes you would like me to use.
a) $100 now, $90 next year, $80 the year after and so on.
b) $10 now, $20 next year, $ 30 the next year and so on.
c) $10 now, 1.5 times as much next year, 1.5 times as much the year after that and
so on.
d)$1 now, $2 next year, $ 4 the year after, $8 the year after and so on.
Of course these schemes will only operate while I am alive. I look forward to
hearing which scheme you choose and why!
Best wishes,
Aunt Lucy."