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Blacksmith

Answer : $43, 000, 000

or according to Linda
2 to the power of (n-1) and therefore

2^(32-1) = $ 2,147,483,648

and Eric says
Linda's math is correct, but she is figuring the number cents.
The answer is $21,474,836.49

and Tim says
Your solution to the horseshoe puzzle is wrong.
It's not 2^(n-1) (i.e.2^31) but 2^n - 1 (i.e. 2^32 - 1).
So the answer should be $42,949,672.95

If you don't believe me consider the case for four nails.
The farmer charges:  

# Amount
1 $0.01
2 $0.02
3 $0.04
4 $0.08
-------
  $0.15 <- i.e. $0.01 x 2^4 - 1


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