I'm having a little difficulty solving growth/decay facts, I suppose this question is about that but I'm having a little difficulty understanding what it means

Question: Keller industries' profit were up $\displaystyle $50,000$ this year over last year. This was an increase of $\displaystyle 12.5%$

Let T represent the profit this year and L the profit from last year and write a system of equations that can be used to determine the profits?