The cost of a $2000 ring after five years at 5% inflation can be obtained using the formula for the cost of an item. However, in addition, the 1.05 needs to be raised to the number of years elapsed which is equal to 5. Thus, the equation becomes cost = 2000(1.05)^5. The final answer is that after five years, the cost of the ring is $2552.56 at 5% inflation.
