Posted by **Joss** on Wednesday, August 14, 2013 at 8:41pm.

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?

- Math -
**Reiny**, Thursday, August 15, 2013 at 8:38am
growth factor in first year = 1+r

growth factor in 2nd year = 1.08

growth factor in 3rd and 4th year = 1.02

so 150000(1+r)(1.08)(1.02)^2 = 150000+45000

1+r = 195000/(150000(1.08)(1.02)^2)

1+r = 1.15696

r = .15696 = 15.696ﬁ

or appr 15.7 %

so at end of first year sales were

150000(1.15696) = 17354.44

at the end of 2nd year sales were

17354.44(1.08) = 18742.79

growth in 2nd year would be that difference

= $1,388.35

- error in placing decimal - Math -
**Reiny**, Thursday, August 15, 2013 at 8:43am
that should be $13,883.52 in the last line as the answer

- Math -
**marina**, Tuesday, August 20, 2013 at 4:58pm
circle the word that completes each sentence

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