I got two options for Ram and Shyam.
Option 1- To give 1 Cr. everyday for next 30 days.
Option 2- To give Rs. 1 on 1st day which will be doubled next day for next 30 days. E.g. 1, 2, 4, 8, 16, 32,64 and so on for next 30 days.
Ram opted option 1 whereas Shyam went with left option 2.
Can you guess, at the end of day 30, whose corpus would be more?
Lets understand…
With option 1, at the end of 30th day, Ram will have a sum of 30 Cr., whereas with option 2, Shyam will have a sum of 107 Cr.
That’s the power of compounding.
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