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?

2 answers
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?

Answers

Answer:We conclude that at restaurants in 2016 will be spent 752.16$.Step-by-step 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 $420 billion was spent at restaurants. We calculate how much will be spent at restaurants in 2016. We use the formula:[tex]\boxed{x=P(1+i)^t}[/tex]where are:[tex]P=420\$\\\\i=6\%=0.06\\\\t=10[/tex]we get[tex]x=P(1+i)^t\\\\x=420\cdot(1+0.06)^{10}\\\\x=420\cdot 1.06^{10}\\\\x=752.16[/tex]We conclude that at restaurants in 2016 will be spent 752.16$.

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