Question

HELP PLEEEASEEE IT’S URGENT

Since 2005, the amount of money spent at restaurants has increased at a rate of 7% each year. In 2005, about $380 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2018?

Answer 1

916 billion

Explanation:

We can use the formula

y = ab^x

a is the initial value and b is growth rate

b = 1+7% = 1.07

y = 380 (1.07) ^x

x - the number of years from 2005 to 2018

2018 -2005 = 13 years

y = 380 (1.07)^13

915.7411000714707691164644866 billion

Rounding

916 billion