Acompany is offering a bonus plan to its employees. the company will set aside 1% of sales as a bonus. the first year sales are expected to be 5,000,000 and increase 20 % per year . at an interest rate of 10 % what is the present value of this bonus over a 5 year period of time

Calculating Sales Amount:

1st Year Sales =        $5,000,000

Every the sales were increased by 20%

2nd Year Sales = $5,000,000 + ($5,000,000*20%)

                          = $6,000,000

3rd Year Sales = $6,000,000 + ($6,000,000 * 20%)

                      = $7,200,000

4th Year Sales = $7,200,000 + ($7,200,000 *20%)

                     = $8,640,000

5th Year Sales = $8,640,000 + ($8,640,000 *20%)

                      = $10,368,000

Calculating Bonus Amount:

1st Year Bonus Amount = $5,000,000 * 1%

                                      = $50,000

2nd Year Bonus Amount = $6,000,000 * 1%

                                      = $60,000

3rd Year Bonus Amount = $7,200,000 * 1%

                                       = $72,000

4th Year Bonus Amount = $8,640,000 * 1%

                                       = $86,400

5th Year Bonus Amount = $10,368,000 * 1%

                                       = $103,680

Year         Bonus Amount         Present Value Factor 10%  Present Values

1                       $50,000                         0.909                             $45,450

2                      $60,000                         0.826                             $49,560          

3                      $72,000                         0.751                               $54,072          

4                      $86,400                         0.683                              $59,011.20

5                      $103,680                       0.621                               $64,385.28      

                                                          PresentValue                    $272,478.48

answer: most likely c

explanation:

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.