Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of 6% each year. In 2004, a

Question

3 years ago

5

Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of 6% each year. In 2004, a

bout $510 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2012?
About $
nothing billion will be spent at restaurants in 2012 if the trend continues.

Mathematics

1 answer:

Stella [2.4K] · Answer 1 · 2022-04-04T00:59:10+03:00

$812 billion will be spent at the restaurants if the trend continues.

Explanation

It is given that the amount spent on restaurants increase by 6% every year.

The amount spent on each of the following years can be determined by solving it using the method used to calculate compound interest.

Amount spent in 2004=$510 billion

Annual rate of interest=6%

we have to calculate the amount spent in 2012

number of years n=8

Amount spent= $initial amount*(1+r/100)^{n} \\510(1+6/100)^8\\510*(1+0.06)^8\\510*1.06^8\\=$812 billion$

Since 2004​, the amount of money spent at restaurants in a certain country has increased at a rate of 6​% each year. In 2004​, a

Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of 6% each year. In 2004, a