SOLUTION: Not sure how to work this problem. Any help would be appreciated. An item currently costing $20 is increasing in cost by 5% per year. Write an equation to find the cost in n yea

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Question 873869: Not sure how to work this problem. Any help would be appreciated.
An item currently costing $20 is increasing in cost by 5% per year. Write an equation to find the cost in n years.
Thank you very much:)
Answer by rothauserc(4718) About Me  (Show Source):
You can put this solution on YOUR website!
Let C be the total cost in n years, then
C = 20(1 + 0.05)^n
Note that this equation comes from the following formula
A = P(1 + r/n)^nt, A is accumulated amount, P is principle, r is rate, n is number of compounds per year, t is number of years