Answer:
B
Step-by-step explanation:
To get 20% more than previous year, we multiply previous year profit with 1.2
Year 1 profit: 3125
Year 2 profit: [tex]3125*1.2=3750[/tex]
Year 3 profit: [tex]3750*1.2=4500[/tex]
Year 4 profit: [tex]4500*1.2=5400[/tex]
Year 5 profit: [tex]5400*1.2=6480[/tex]
Total profit of 5 years is the sum of each individual year shown above.
Total profit in 5 years = [tex]3125+3750+4500+5400+6480=23,255[/tex]
Answer choice B is correct.
