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

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