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 ":
[tex]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[/tex]
Hence, Option 'B' is correct.
