Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If we have an investment group that is gifting each other $500 and gaining a return of $3500 based on a pyramid-esque model. It depends

If we have an investment group that is gifting each other $500 and gaining a return of $3500 based on a pyramid-esque model. It depends on new people coming in but wed like to close it. How it works is that Week 1 -1 person brings in two people Week 2 - those two people also bring two people Week 3- those 4 people being 8 people Week 4 - those 8 people fund person number 1 Week 5- person 1 regifts the same person as before $500 From month to month those same 8 people fund that 1 person Week 5- each of those 8 people start the cycle again with their own two people

1) Wed like to close the circles so that people no longer have to find two more people to keep it going. Is there a way to switch around the last line of ppl that have come in so that they can all fund each other?

2) If we want to close access to our group around 1000 people how many people below the last 1 person whose been gifted would also have to be funded? How much cash flow is required to give them the same 500/3500 deal? Would it work better if the last row of people had a 500/1500 turnaround?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Cornerstone Of Business Decision Making

Authors: Jay S Rich, Jeff Jones, Linda Ann Myers

5th Edition

0357132696, 978-0357132692

More Books

Students also viewed these Accounting questions