### Home > CC3MN > Chapter 10 > Lesson 10.3.1 > Problem10-83

10-83.

An item currently costing $$20$ is increasing in cost by $5$% per year. 1. What is the multiplier? The cost is increasing, so the multiplier will be greater than $1$. $1.05$ 2. What will the item cost five years from now? The original cost would be multiplied by $1.05$ for the first year, an additional $1.05$ for the second year, an additional $1.05$ every year after that.$$25.52$

3. Write an equation to calculate the cost in $n$ years. What does each of the factors in your equation represent?

Use the starting value and multiplier to write an equation of the form $t(n) = ab^n$