An item currently costing $20 is increasing in cost by 5% per year.

1. What is the multiplier?

   Hint (a):

   The cost is increasing, so the multiplier will be greater than 1.

   Answer (a):

   $1.05$

2. What will the item cost five years from now?

   Hint (b):

   The original cost would be multiplied by 1.05 for the first year, an additional 1.05 for the second year, an additional 1.05 every year after that.

   Answer (b):

   $$25.52$

3. Write an equation to find the cost in n years.