Question

Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 6% each year. In 2006, about $420 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2016?

Answer 1

Explanation:

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Answer 2

We conclude that at restaurants in 2016 will be spent 752.16$.

Explanation:

We know that since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 6% each year. In 2006, about $420 billion was spent at restaurants.

We calculate how much will be spent at restaurants in 2016.

We use the formula:

`\boxed{x=P(1+i)^t}`

where are:

`P=420\$\\\\i=6\%=0.06\\\\t=10`

we get

`x=P(1+i)^t\\\\x=420\cdot(1+0.06)^(10)\\\\x=420\cdot 1.06^(10)\\\\x=752.16`

We conclude that at restaurants in 2016 will be spent 752.16$.