A companys revenue increased by 12% in the first year and then decreased by 8% in the second year. If the initial revenue was $500,000, what was the revenue at the end of the second year?

Sun, 03 May 2026 08:03:37 +0000

**Why Mixed Revenue Trends Matter—and What They Reveal About Modern Business Cycles** In recent years, fluctuating revenue patterns have become a telling signal across industries. One notable example: A well-established company saw a 12% surge in revenue during its first year, driven by strong market demand and strategic digital growth. Yet, in the second year, a 8% drop followed, sparking curiosity about underlying causes. This shift isn’t unusual—it mirrors the volatility observed in evolving U.S. markets where consumer behavior, competition, and economic conditions constantly interact. Understanding these patterns helps readers navigate uncertainties and recognize opportunities hidden in the numbers. This specific case—$500,000 in Year 1 growing 12%, then declining 8% in Year 2—reveals a nuanced financial story. Far from a setback, this trajectory reflects real-world challenges: seasonal shifts, macroeconomic pressures, or even digital platform changes. For curious, mobile-first readers seeking clarity, understanding the math and context behind these changes offers insight into broader business resilience. ### What Happened? The Revenue Journey in Numbers