Question

If if the branding division were to experience the same percentage increase from year 2 to year 3 as they did from year 1 to year 2, what would the branding division’s revenue be in year 3 (rounded)? year 1 1.1% year2 32%

Answer 1

Since the basis is from year 1 to year 2, calculate first for the difference of their percentages. That would be:

Difference = year 2 - year 1
Difference = 2.32% - 1.1% = 1.22%

We apply this same value of percentage increase from year 2 to year. Thus, the percentage for year 3 is:

% Year 3 = % Year 2 + percentage increase
% Year 3 = 2.32% + 1.22%
% Year 3 = 3.54%