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

## Answer This Question

## Related Questions

- math - As compared to its first year of operation, ABC Company grew 8% in the ...
- math - As compared to its first year of operation, ABC Company grew 8% in the ...
- math - As compared to its first year of operation, ABC company grew 8% in the ...
- maths - As compared to its first year of operation, ABC Company grew 8% in the ...
- msu - As compared to its first year of operation, ABC company grew 8% in the ...
- math 3rd part - b.The company is projecting a 20% growth each year for the next ...
- math b50 - must answered in sequences/series formulas If the profit earned by a ...
- Algebra 2 - Year: 1, 2, 3, 4, 5 Sale:.48,1.032,2.198,4.726,10.208 (in millions...
- Financial Management - Proctor Micro-Computers, Inc. requires $1,200,000 in ...
- Economics - Jim signed a new deal for $10 million with the Toronto maple leafs. ...

More Related Questions