A companys revenue increased by 20% in the first year, then decreased by 10% in the second year. If the initial revenue was $500,000, what is the revenue at the end of the second year?

Thu, 30 Apr 2026 08:41:23 +0000

**Why A companys revenue increased by 20% in the first year, then decreased by 10% in the second year? If the initial revenue was $500,000, what is the revenue at the end of the second year?** In a dynamic economic landscape where consumer habits shift rapidly, stories of rapid growth followed by unexpected declines are becoming increasingly common—and often spark deep curiosity. The pattern of A companys revenue rising 20% in the first year only to dip 10% in the second reflects a nuanced cycle observed across tech, retail, and service-driven businesses. If the company started with $500,000 in initial revenue, understanding the true change requires a clear, step-by-step look at how these percentages reshape the bottom line. This movement is significant because it mirrors real-world challenges companies face: sudden market saturation, changing demand, or internal operational adjustments. For US-based readers following financial health trends, recognizing this pattern enables smarter insight into corporate resilience and strategic adaptability. Calculating the actual revenue after these shifts reveals a precise picture. A 20% increase on $500,000 pushes the figure to $600,000. Then a 10% decrease multiplied across $600,000 reduces it by $60,000, landing at $540,000 at the end of the second year. This outcome is not just a number—it reflects the delicate balance between momentum and market realities.