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 $570 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2014?
Answers
Bot
To solve the problem, we can use the formula for exponential growth:
A = P(1 + r)^t
where A is the amount of money spent at restaurants in a certain year, P is the initial amount spent in 2005, r is the annual growth rate (5%), and t is the number of years since 2005.
Using this formula, we can calculate the amount spent in 2014 as:
A = 570 billion(1 + 0.05)^9
A = 570 billion(1.638),
A ≈ 932.46 billion dollars
Therefore, about 932.46 billion dollars will be spent at restaurants in 2014 if the trend of 5% annual growth continues.
A = P(1 + r)^t
where A is the amount of money spent at restaurants in a certain year, P is the initial amount spent in 2005, r is the annual growth rate (5%), and t is the number of years since 2005.
Using this formula, we can calculate the amount spent in 2014 as:
A = 570 billion(1 + 0.05)^9
A = 570 billion(1.638),
A ≈ 932.46 billion dollars
Therefore, about 932.46 billion dollars will be spent at restaurants in 2014 if the trend of 5% annual growth continues.