Question

Sam is planning to start a pool cleaning business. If Sam meets his profit goal of $45,000 the first year and expects his annual profits to increase by 5.5% each year for the next 3 years, how much profit does Sam expect to make in his third year of business?

Answer 1

Answer: The answer is $ 49,950

Explanation:

The profit for the first year is $45,000

The increase in profit is 5.5%

Increase in profit

= 5.5/100*45,000

= $2,475

To calculate the profit for the second year

Profit + increase in profit

$45,000 +$2,475

= $47,475

To calculate the profit for the third year

Profit + increase in profit

$ 47,475 + $ 2,475

= $ 49 950

Therefore, The profit for the first year is $ 45,000, The second year profit is $47,475, For the third year the profit is $ 49,950