Question

A triple a video game title cost $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

`~~~~~~ \textit{Continuously Compounding Interest Earned Amount} \\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$60\\ r=rate\to 4.75\%\to (4.75)/(100)\dotfill &0.0475\\ t=years\dotfill &5 \end{cases} \\\\\\ A = 60e^(0.0475\cdot 5) \implies A=60e^(0.2375)\implies A \approx 76.08`