Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 4% each year. In 2006, a

Question

3 years ago

5

Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 4% each year. In 2006, a

bout $500 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2016?

Mathematics

2 answers:

Kobotan [32] · Answer 1 · 2021-11-28T16:02:27+03:00

For this case we have the following exponential function:
y = A (b) ^ x
Where,
A: initial amount
b: growth rate
x: time in years
Substituting the values we have:
y = 500 (1.04) ^ 10
y = 740.1221425
Rounding:
y = $ 740 billion
Answer:
It will be spent at restaurants $ 740 billion in 2016