Check Up

Linda runs a smart phone app business, and in her first year she had net earnings of \($20\thinspace 000\). Since then, her net earnings have increased by \(5\%\) each year.

1. Write out how much money Linda earned each year, for her first five years in business.
   
   
   
2. Justify that this is a geometric sequence and write the general term.
   
   
   
3. How much money has Linda earned through the business after 5 years? 10 years?
   
   
   
4. Linda’s goal is to net one million dollars through the business. How many years will it take for her to accomplish this goal?
   
   
   
5. What assumption(s) did you make in answering c. and d.?