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2 years ago

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Since 2005, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year, In 2005, abou

t $360 billion was spent at
restaurants. If the trend continues, about how much will be spent at restaurants in 2017?

1 answer:

Kryger [21]2 years ago

3 0

Answer:

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

Step-by-step explanation:

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