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Blacksmith

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A blacksmith is shoeing a miser's horse.
The blacksmith charges ten dollars for his work.
The miser refuses to pay.

"Very well", says the blacksmith, "there are eight nails in each horse shoe.
The horse has four shoes. There are 32 nails in all.
I will ask you to pay one penny for the first nail, two pennies for the next nail, four pennies for the next nail, eight pennies for the next nail, sixteen pennies for the next, etc. until the 32nd nail".

Question: How much did the miser pay?

See answer

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