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 $7\%?$

$$18,600$

$$14,480$

$$16,936$

$$12,263$

$$20,000$

Question $19(1$ point$)$

You are interested in purchasing a new automobile that costs $$35,000.$ The dealership offers

you a special financing rate of $0\mathrm{.}5\%$ per month for $48$ months. Assuming that you do not make

a down payment on the auto and you take the dealer's financing deal, then your monthly car

payments at the end of each month would be closest to:

$$647$

$$842$

$$789$

$$729$

$$822$

Question $20(1$ point$)$

You owe $$20,000$ in student loans that charge $6\mathrm{.}3\%$ annual interest. If you plan to pay back

$$2,500$ at the end of each year, how long will it take to pay off these loans?

$13\mathrm{.}4$ years

$11\mathrm{.}5$ years

$9\mathrm{.}3$ years

$10\mathrm{.}5$ years

$12\mathrm{.}4$ years