Jim (the owner of AcmeCo) recently sold his business to TitanTek. In addition to the cash paid when the sale occurred, TitanTek is willing to pay Jim up to $40,000,000 in additional "Earnout" payments depending upon AcmeCo's attainment of various performance targets in the 12 months following the sale. Jim wants to share a portion of the earnout payments received from Titantek with his employees, as follows:
a.) if the earnout received is less than $10 million, Jim will not share anything with his employees;
b.) if the earnout payment received is exactly $10 million, Jim will share $100,000 with employees;
c.) if the earnout payment received is exactly $40 million, Jim will share $8,000,000 with employees; and d.) if the earnout payment received is between $10 million and $40 million, Jim wants to share between 100,000 and $8,000,000, the exact amount to be calculated on an exponential compounding curve.
What is the formula to solve ‘d.)’? What formula will draw the exponential compounding curve and calculate the exact amount of bonus that Jim will share with employees?
a.) if the earnout received is less than $10 million, Jim will not share anything with his employees;
b.) if the earnout payment received is exactly $10 million, Jim will share $100,000 with employees;
c.) if the earnout payment received is exactly $40 million, Jim will share $8,000,000 with employees; and d.) if the earnout payment received is between $10 million and $40 million, Jim wants to share between 100,000 and $8,000,000, the exact amount to be calculated on an exponential compounding curve.
What is the formula to solve ‘d.)’? What formula will draw the exponential compounding curve and calculate the exact amount of bonus that Jim will share with employees?