Answer: Since 2005 the amount of money spent on restaurants in a certain country has increased at a rate of 4% each year. In 2005, about 670 billion was spent on restaurants.
To find the amount spent on restaurants in 2013, we can use the formula:
A = P(1 + r)^t
Where:
A = the final amount
P = the initial amount (670 billion)
r = the rate of increase (0.04 or 4%)
t = the number of years since the initial amount (8 years)
Plugging in the values, we get:
A = 670 billion (1 + 0.04)^8
A = 670 billion (1.04)^8
A = 670 billion * 1.4304
A = 951.8 billion
So, if the trend continues, about 951.8 billion will be spent on restaurants in 2013.
Explanation: