How much money will you win?

Directions: You have won a contest.You will get to choose one of three methods for payment of your prize.Each method will be paid on a monthly basis.You will be asked to draw a number between 1 and 30.This number will represent the number of months you will be paid your winnings.You must be prepared to identify which of the three payment methods you want at that point.The three methods are:

Method 1Method 2Method 3

month 1: $1000month 1: $100month 1: $0.01

month 2: $1000month 2: $200month 2: $0.02

month 3: $1000month 3: $300month 3: $0.04

month 4: $1000month 4: $400month 4; $0.08

etc.etc.etc.

Answer these questions:

a)Calculate what the payment would be for the twelfth month for each method.

b)Calculate what the total amount of the prize money would be for 12 months for each method.

c)Decide which method of payment you want and explain why for any given number of months drawn.

d)How many months will it take for your method of choice to pay off more total prize money than the other methods?How much would your total prize money be at this point?