Question 1045935
The equation is:
{{{ 10^6 = 2*10^5*( 1 + .25 )^t }}}
where {{{ t }}} = time in years
{{{ .5*10 = 1.25^t }}}
{{{ 5 = 1.25^t }}}
Take the log of both sides
{{{ .69897 = t*.09691 }}}
{{{ t = 7.21256 }}}
7 yrs will pass before annual profit is $1 million
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check:
{{{ 10^6 = 2*10^5*( 1 + .25 )^t }}}
{{{ 10^6 /10^5 = 2*1.25^7.21256 }}}
{{{ 10/2 = 1.25^7.21256 }}}
{{{ 5 = 1.25^7.21256 }}}
{{{ 5 = 4.9999917 }}}
close enough