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

First year sale = 150 000 dollars,
Then it grew 8% for the second years, and 2% each year for the next 2 years.
Total growth from 2-4 years increase is 45 000 dollars
Find the growth for the year 2
=> 8% = 8/100 = 0.08
=> 150 000 x .08
=> 120 000
Thus the growth of the ABC company for the second year is 120 000, that makes it
=> 150 000 + 120 000
=> 162 000 dollars.