Since 2005, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year, In 2005, about $360 billion was spent at

restaurants. If the trend continues, about how much will be spent at restaurants in 2017?

Question

Mathematics

Nora

29 August, 04:37

Since 2005, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year, In 2005, about $360 billion was spent at

restaurants. If the trend continues, about how much will be spent at restaurants in 2017?

+3

Answers (1)

Know the Answer?

Kamryn Reilly · Answer 1

This is an exponential growth problem.

The growth rate is 4% (0.04).

The time is 10 years (10 years from 2005 to 2015)

A = P (1+i) t

A = amount spent in 2015

P = amount spent in 2005

i = interest rate expressed as a decimal

t = # years

A = 500 (1.04) 10

A = 500 (1.480244)

A = 740.122 = => 740 billion

Since 2005, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year, In 2005, about $360 billion was spent atrestaurants. If the trend continues, about how much will be spent at restaurants in 2017?

Since 2005, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year, In 2005, about $360 billion was spent at

restaurants. If the trend continues, about how much will be spent at restaurants in 2017?