Question

scince 2004, the amount of money spent at restaurants in a certain country has increased a rate of 6% per year. in 2004, about $390 billion was spent at restaurants. if the trend continues, about how much will be spent at restaurants in 2018

Answer 1

The estimated amount of money that will be spent at restaurants in 2018 is $926.13 billion.

Step-by-step explanation:

To calculate the amount of money that will be spent at restaurants in 2018, we can use the formula for compound interest:

A = P(1 + r)^n

Where:

• A is the future value (amount spent at restaurants in 2018)
• P is the present value (amount spent at restaurants in 2004)
• r is the interest rate per year (6% or 0.06)
• n is the number of years (2018 - 2004 = 14)

Plugging in the values, we have:

A = 390 billion * (1 + 0.06)^14 = 390 billion * 2.377 = 926.13 billion

Therefore, it is estimated that about $926.13 billion will be spent at restaurants in 2018.