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 Post subject: Pyramid scam?Posted: Mon, 30 Jan 2012 18:06:49 UTC
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Joined: Mon, 30 Jan 2012 17:37:57 UTC
Posts: 3
Suppose Jill has a network of friends who sell Avon at Avon Parties they have once a week at their own homes. Each person makes a net profit of \$20.00 from their own sales at their own party.
The network is in the form of a tree with four levels with Jill at the top with two people branching from each person up to level 4. (Jill is level 1, the two friends below her are level 2, the four friends below them are level 3, and the 8 friends below them are level 4).
Now suppose each person in the network gets 15% of the net profit of each of the two people below them in the network in addition to there own avon sales. How much will Jill make in one week?

Jill
| |
a b
| | | |
c d e f
| | | | | | | |
g h i j k l m n

So i did the math going from the bottom up and i got Jill will get \$8.34 +\$20.00 = \$28.34

But im not satisfied. IS there an equation i could use to find the answer for any amount of people with any percentage?
Ive been trying to research and Ive found the geometric series formula but dont know how to use it. Anyone know the equation for pyramid schemes?

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 Post subject: Re: Pyramid scam?Posted: Wed, 1 Feb 2012 18:14:18 UTC
 Member of the 'S.O.S. Math' Hall of Fame

Joined: Mon, 19 May 2003 19:55:19 UTC
Posts: 7949
Location: Lexington, MA
Hello, Spaghett!

Quote:
Suppose Jill has a network of friends who sell Avon at Avon parties they have once a week at their own homes.
Each person makes a net profit of \$20.00 from their own sales at their own party.
The network is in the form of a tree with four levels with Jill at the top with two people branching from each person up to level 4.
(Jill is level 1, the two friends below her are level 2, the four friends below them are level 3,
and the 8 friends below them are level 4).
Now suppose each person in the network gets 15% of the net profit of each of the two people below them
in the network in addition to there own Avon sales.
How much will Jill make in one week?

Code:
a------------ Jill -------------b
|                               |
c ------*------ d               e ------*------ f
|               |               |               |
*---*---*       *---*---*       *---*---*       *---*---*
|       |       |       |       |       |       |       |
g       h       i       j       k       l       m       n

You neglected the fact that each person had a profit of \$20.

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