Question

As compared to its first year of operation, ABC Company grew 8% in the second year and an additional 2% per year for the next two years. If total growth for years 2-4 was $45,000 over the first year’s sales of $150,000, how much did ABC Company grow in year 2?

Answer 1

Honestly, most of the information here is excess, and its only purpose is to confuse you. So, lets take a look at the important information.
What we're trying to find is the growth in the second year. We're told that the company grows 8% on the second year, and the starting sale on the first year was 150,000. Really, thats all you need to know!

Since you know the starting price (150,000) and the growth percentage (8%), all you really have to do is multiply the starting price with the percentage.

So that would be 150,000 *.08, which is 12000. Therefore, the growth in the second year was 12,000

Answer: $12,000

Hope this helped ^-^