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?
a.
$47,475.00
b.
$50,086.13
c.
$52,840.86
d.
$55,747.11

Answer 1

Answer: Option 'B' is correct.

Step-by-step explanation:

Since we have given that

Initial goal of his profit he expect = $45000

Rate of growth = 5.5% each year for the next 3 years.

We need to find the profit Sam expected to make in his third year of business.

that means, Number of years completed = 2

So, we will use "Compound interest ":

$A=P(1+\dfrac{r}{100})^n\\\\A=45000(1+\dfrac{5.5}{100})^2\\\\A=45000(1+0.055)^2\\\\A=45000(1.055)^2\\\\A=\ 50,086.13$

Hence, Option 'B' is correct.

Answer 2

b.$50,086.13
just took the test! make most brainly please!