A company has the goal of doubling their revenue from $32$ million dollars to $64$ million dollars over the next $2$ years. If the company increases its revenue by $50 \%$ in the first year, by approximately what percentage must the company increase their revenue in the second year in order to reach their goal? $\newline$ Choose $1$ answer: $\newline$ (A) $\mathbf{2 5 \%}$ $\newline$ (B) $33 \%$ $\newline$ (C) $50 \%$ $\newline$ (D) $100 \%$

Full solution

Q. A company has the goal of doubling their revenue from

32

million dollars to

64

million dollars over the next

2

years. If the company increases its revenue by

50 \%

in the first year, by approximately what percentage must the company increase their revenue in the second year in order to reach their goal?

\newline

Choose

1

answer:

\newline

(A)

\mathbf{2 5 \%}

\newline

(B)

33 \%

\newline

(C)

50 \%

\newline

(D)

100 \%

Calculate Revenue After First Year: Calculate the revenue after the first year with a $50$ % increase. $\newline$ Revenue after first year = Initial revenue + (Initial revenue * Increase percentage) $\newline$ = $32$ million dollars + ( $32$ million dollars * $0.50$ ) $\newline$ = $32$ million dollars + $16$ million dollars $\newline$ = $48$ million dollars
Calculate Remaining Revenue: Calculate the remaining amount of revenue needed to reach the goal of $64$ million dollars after the first year. $\newline$ Remaining revenue needed = Goal revenue - Revenue after first year $\newline$ = $64$ million dollars - $48$ million dollars $\newline$ = $16$ million dollars
Calculate Percentage Increase: Calculate the percentage increase needed in the second year to reach the goal. $\newline$ Percentage increase needed = $(\frac{\text{Remaining revenue needed}}{\text{Revenue after first year}}) \times 100\%$ $\newline$ = $(\frac{16 \text{ million dollars}}{48 \text{ million dollars}}) \times 100\%$ $\newline$ = $0.3333\ldots \times 100\%$ $\newline$ = $33.33\ldots\%$
Determine Closest Answer: Determine the closest answer choice to the calculated percentage. The closest answer choice to approximately $33.33\%$ is (B) $33\%$ .