Consider a Ponzi scheme where investors are promised 100% profit per quarter and at the beginning of each quarter (90 days), 1000 investors contribute $1000 each, and all monies stay in
Until the end of the year. Suppose that at the end of the year, 10% of investors actually invest
Another $2000 rather than taking out profit. Now what amount stays with the operator going into
The second year?
A)$1,200,000
B)$21,000,000
C)$4,800,000
D)$84,000,000

Question

Quizplus · Accepted Answer

The Answer of Consider a Ponzi scheme where investors are promised 100% profit per quarter and at the beginning of each quarter (90 days), 1000 investors contribute $1000 each, and all monies stay in
Until the end of the year. Suppose that at the end of the year, 10% of investors actually invest
Another $2000 rather than taking out profit. Now what amount stays with the operator going into
The second year?
A)$1,200,000
B)$21,000,000
C)$4,800,000
D)$84,000,000

Consider a Ponzi Scheme Where Investors Are Promised 100% Profit