A Business Is Deciding Whether to Give an End-Of-Year Bonus

question 1

Multiple Choice

A business is deciding whether to give an end-of-year bonus of $5000 each year for the next four years to an employee,in order to increase the number of sales that employee makes.What is the minimum extra profit the employee must generate this year for the bonus to be worthwhile over the next four years,if the discount rate is 7%?

• A)$12,263
• B)$14,480
• C)$16,936
• D)$20,000
• E)$18,600

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Definitions:

Significant Difference

A statistically meaningful difference between two or more groups or variables, as determined by specific statistical tests.

Price Charged

The amount of money demanded or set as payment for the sale of a good or service.

Hardware Stores

Retail businesses specializing in selling tools, building materials, and home improvement products.

Tools

Instruments or software used to perform tasks or functions, especially in the context of technical or specialized processes.