Question

Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of ​5% each year. In 2004, about ​$500 billion was spent at restaurants. If the trend​ continues, about how much will be spent at restaurants in ​2017

Answer 1

Answer: $1,146 billion

Explanation:

First find the number of years between 2004 and 2017.

= 2017 - 2004

= 13 years

To find out such answers, use the future value formula which shows the value of an amount being increased by a certain percentage over a number of periods.

Future value = Amount * ( 1 + rate) ^ number of periods

= 500 * ( 1 + 5%) ¹⁷

= $1,146 billion