Answer:
Within 2 years
Explanation:
1st year of Sam's business:
Operational expense = $30,500
Profit = $45,000
Business set up costs = $49,500
Overall business profit (Loss) = $(4,500)
2nd Year of Sam's business:
Since the profit will be increased by 5.5%, the new profit after operational expenses will be $45,000 + $(45,000 x 5.5%) = $47,475
Therefore, the overall profit = Last year's loss + This year's profit = $(-4,500+47,475) = $42,975
Therefore, he can achieve the overall profit within 2 years' of operation.
