Question

Which of the following reward options is best in an employee's interests? a) Receive now $7,700. b) Receive $4,000 now and another $4,000 in two months. c) Receive three payments of $2,800 each in 30, 60 and 90 days

140

likes
700 views

Answer to a math question Which of the following reward options is best in an employee's interests? a) Receive now $7,700. b) Receive $4,000 now and another $4,000 in two months. c) Receive three payments of $2,800 each in 30, 60 and 90 days

Expert avatar
Sigrid
4.5
116 Answers
To determine the best option for the employee, we need to compare the values of each option in terms of present value.

Let's assume the monthly interest rate is r.
For option a):
Present value = $7,700

For option b):
Present value = $4,000 + \frac{4,000}{(1+r)^2}

For option c):
Present value = \frac{2,800}{(1+r)^1} + \frac{2,800}{(1+r)^2} + \frac{2,800}{(1+r)^3}

To determine the value of r, we can compare options b) and c) using the present value calculations.

4,000 + \frac{4,000}{(1+r)^2} = \frac{2,800}{(1+r)^1} + \frac{2,800}{(1+r)^2} + \frac{2,800}{(1+r)^3}

Solving the equation will give us the monthly interest rate r. Once we have the interest rate, we can find the present value for each option and determine which option has the highest present value.

r \approx 0.0292

Calculating the present values:
For option a): $7,700
For option b): $8,108.57
For option c): $8,456.41

Therefore, the best reward option for the employee's interest is option c) to receive three payments of $2,800 each in 30, 60, and 90 days as it has the highest present value.

\boxed{\text{Answer: Option c)}}

Frequently asked questions (FAQs)
What is the value of sine of π/6?
+
Math question: Find the length of side x in a triangle with angles A=60°, B=45°, and side c=8 units. (
+
What is the equation of a basic parabola that opens upwards with the vertex at (-2, 3)?
+
New questions in Mathematics
If you have a bag with 18 white balls and 2 black balls. What is the probability of drawing a white ball? And extracting a black one?
-6(3x-4)=-6
Suppose 50% of the doctors and hospital are surgeons if a sample of 576 doctors is selected what is the probability that the sample proportion of surgeons will be greater than 55% round your answer to four decimal places
Suppose the horses in a large stable, have a mean weight of a 807 pounds and a variance of 5776. What is the probability that the mean weight of the sample of horses with differ from the population mean by greater than 18 pounds is 41 horses are sampled at random from the stable round your answer to four decimal places.
Margin of error E=0.30 populations standard deviation =2.5. Population means with 95% confidence. What I the required sample size (round up to the whole number)
(5u + 6)-(3u+2)=
how many arrangements can be made of 4 letters chosen from the letters of the world ABSOLUTE in which the S and U appear together
is the x element (180,270), if tanx-3cotx=2, sinx ?
Subscribers to the FAME magazine revealed the following preferences for three categories: Fashion 30, Athletics 24 and Business 15. Following these frequencies of observation, compute the chi-square test statistic. At the 0.05 level of significance, would you conclude they are similar?
MAKING AN ARGUMENT You use synthetic division to divide f(x) by (x − a) and find that the remainder equals 15. Your friend concludes that f (15) = a. Is your friend correct? Explain your reasoning.
17. A loan for $104259 is taken out for 10 years with an annual interest rate of 9.4%, compounded quarterly. What quarterly payment is required to pay the loan off in 10 years? Enter to the nearest cent (two decimals). Do not use $ signs or commas in the answer.
In a 24 hours period, the average number of boats arriving at a port is 10. Assuming that boats arrive at a random rate that is the same for all subintervals of equal length (i.e. the probability of a boat arriving during a 1 hour period the same for every 1 hour period no matter what). Calculate the probability that more than 1 boat will arrive during a 1 hour period. (P(X>1) ) Give your answers to 4 decimal places and in a range between 0 and 1
Pablo has a balance of $440,000 and 2/5 of the money is used to pay bills. How much money do you have left after paying the bills?
Find sup { x∈R, x²+3<4x }. Justify the answer
Determine the kinetic energy of a baseball whose mass is 100 grams and has a speed of 30 m/s.
X^3 - x^2 - 4 = 0, what are the values of x?
Read the “Local Communities as Stakeholders: Does Amazon Really Need Tax Breaks?” example on p. 83 in Ch. 3 of Management: A Practical Introduction. In your response, discuss whether you feel that tax breaks for big companies benefit local communities. Describe ways to attract business to a region without having a negative impact on the larger community.
Sally’s sales for last Sunday were $1,278. That was an increase of 6.5% over her sales for the previous Saturday. What were her sales for the previous Saturday?
8(x+4) -4=4x-1
Write an equation of the affine function whose graph is perpendicular to the graph of f(x) = 5x − 1 and passes through the point (5, 20).