SOLUTION: If the rate of inflation is 8.6% per year, how much could a camera that now costs $225 be expected to cost 5 years from now? Round the nearest dollar.

SOLUTION: If the rate of inflation is 8.6% per year, how much could a camera that now costs $225 be expected to cost 5 years from now? Round the nearest dollar.

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Question 1069267: If the rate of inflation is 8.6% per year, how much could a camera that now costs $225 be expected to cost 5 years from now?
Round the nearest dollar.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
A=Ao(1+r)^5
A=225(1+.086)^5
A=$339.88 or $340.
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