Question

Since 2005​, the amount of money spent at restaurants in a certain country has increased at a rate of 5​% each year. In 2005​, about ​$290 billion was spent at restaurants. If the trend​ continues, about how much will be spent at restaurants in 2020​? PLEASE HELP ME

Answer 1

About $603

Explanation:

Given data

The time interval 2005-2020= 15 years

The principal amount spent= ​$290 billion

The rate= 5%

Let us apply the compound interest formula

A=P(1+r)^t

substitute

A=290(1+0.05)^15

A= 290(1.05)^15

A= 290*2.0789

A= $602.881

Hence about $603 will be spent in 2020