If you could have one of the following as your pay for thirty days’ work, which would you choose?

(A) $10,000, or

(B) a penny the first day, two cents the second day, four cents the third day, eight cents the fourth day, and so on, with each day doubling on out to thirty days.

The $10,000 sounds very attractive, but the fact is that the penny doubled each day for thirty days adds up to over five million dollars. Of course, that is 100% interest compounded daily, a rate not available to most working folks. Nevertheless, this example shows you the power of compounding on your investment earnings.

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