Question

A triple A video game title costs $60 today. If the inflation rate is 4.75% and is compounded continuously how much will this same video game cost in 5 years?

Answer 1

To start off, 4.75% of $60 is $2.85. You said 5 years so we multiply the $2.85 to get $14.25. Lastly we add $14.25+$60=$74.25. The answer is $74.25