You make $13,559 in your first year operating and projecting 36% increase in your earnings next year. To project your earnings at this growth rate you would have year 2 earnings of:
13,559 x (1.36) = $18,440.24
If your year 3 growth rate is also 36% you would take that based off your year 2 earnings so:
18,440.24x (1.36) = $25,078.73
The dollar value of this earnings growth is:
Year 2: $4,881.24
Year 3: $6,638.49
The growth rate over the period of 2 years from year 1 to 3 is computed as
11,519.73/13559= 84%
To go out 5 years you would follow a similar process.
If someones in come grew 36% in 2 years would that then mean a 162% potential growth in five years.
Extra details: income year one 13559 in come in year two 21060 = 36 %
Projection: 13559x36%=4881.24 now does this mean i could expect to make 4881.24 more over the prior year?
Side note, i know a 36% raise every year is irrational, but i am thinking in terms of myself as a business.
