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​?

Answer 1

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.