A companys revenue increased by 25% in the first year and 15% in the second year. If the initial revenue was $200,000, what is the revenue at the end of the second year?

Sun, 03 May 2026 05:59:35 +0000

**How A Company’s Revenue Grew 25% in Year One and 15% in Year Two — What That Means for Growth Trends in the U.S. Market** In today’s evolving economy, steady growth across industries remains a key indicator of financial health—and two numbers are drawing quiet attention among business observers: a company’s revenue rose 25% in its first year and maintained strong momentum with a 15% increase in the second. If the initial revenue was $200,000, understanding the compounding impact offers valuable insight into sustainable scaling. From $200,000, the first year’s 25% growth lifts revenue to $250,000—a milestone signaling effective strategy or market alignment. The second year brings an additional 15% increase applied not to the original figure, but to the already-multiply total. On paper, that means growth on $250,000, producing $287,500 at the year-end mark, reflecting disciplined market adoption and operational efficiency. This pattern reflects growing demand and expanded reach—factors increasingly relevant in the U.S. business landscape, where competition hones precision in scaling. Companies achieving consistent double-digit gains typically balance product-market fit with responsive innovation, reinforcing confidence in their long-term viability.