Question**: A company’s revenue increased by 20% in the first year and by 25% in the second year. If the initial revenue was $200,000, what was the revenue at the end of the second year?

Sun, 03 May 2026 20:57:05 +0000

How a 20% and 25% Annual Revenue Growth Transformed a Company’s Earnings: What the Numbers Reveal In today’s competitive business landscape, strong revenue growth isn’t just a sign of success — it’s a promise of momentum and scalability. For many companies, year-over-year growth rates of 20% and 25% over two years reflect solid performance and growing market confidence. But how do these percentages translate into real financial impact? Let’s break down a compelling growth scenario to understand exactly how a company’s revenue evolves from a solid start. ### Starting Strong: $200,000 Initial Revenue
Imagine a company launching with a strong foundation — $200,000 in initial revenue during year one. While this might seem modest, the strategic execution and market relevance set the stage for rapid growth. ### Year One Attack: +20% Revenue Growth
A 20% increase means the business expands its base by an additional $40,000.
Revenue at End of Year One:
$200,000 × (1 + 0.20) = $240,000