Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year. In 2006, about $340 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2018?

Question

Since 2006​, the amount of money spent at restaurants in a certain country has increased at a rate of 8​% each year. In 2006​, about ​$340 billion was spent at restaurants. If the trend​ continues, about how much will be spent at restaurants in 2018​?
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Part 1
About ​$
  
enter your response here billion will be spent at restaurants in 2018 if the trend continues.
​(Round to the nearest whole number as​ needed.)

GPT 3.5 · Answer

To calculate the amount of money that will be spent at restaurants in 2018, we need to find the value after 12 years of a compound interest rate of 8% per year. (2006 to 2018 is a span of 12 years.)

Using the compound interest formula, we can calculate the final value:

Final Value = Initial Value * (1 + interest rate)^number of years

Initial Value = $340 billion
Interest Rate = 8% = 0.08
Number of years = 12

Final Value = 340 * (1 + 0.08)^12
Final Value ≈ 340 * (1.08)^12
Final Value ≈ 340 * 2.44140625
Final Value ≈ 829.765625

Rounded to the nearest whole number, about $830 billion will be spent at restaurants in 2018 if the trend continues.

Since 2006​, the amount of money spent at restaurants in a certain country has increased at a rate of 8​% each year. In 2006​, about ​$340 billion was spent at restaurants. If the trend​ continues, about how much will be spent at restaurants in 2018​?

Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year. In 2006, about $340 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2018?