Question

Since 2004, the amount of money spent restaurants in a certain country has increased at a rate of 7% each year. In 2004, about $390 billion was spent restaurants. If the trend continues, about how much Will be spent restaurants in 2017

Answer 1

The amount of money that will be spent on restaurants in 2017 is approximately $726.32 billion.

Step-by-step explanation:

To calculate the amount of money that will be spent on restaurants in 2017, we can use the formula for compound interest. The formula is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount (initial amount), r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the principal amount is $390 billion, the interest rate is 7% (0.07), the number of times interest is compounded per year is 1, and the number of years is 2017 - 2004 = 13. Plugging in these values into the formula, we get A = 390 billion * (1 + 0.07/1)^(1*13). Evaluating this expression, the amount of money that will be spent on restaurants in 2017 is approximately $726.32 billion.