Question

Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of 8% each year. I’m 2004, about $290 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2018?

Answer 1

$851, 786, 151, 000

Explanation:

N = A (1 + increase) ^n

Where N is future amount, A is initial amount, increase is percentage increase/decrease, n is number of mins/hours/days/months/years.

290 is our A value, increase is 8% (0.08), n is the number of years (2018 - 2004 = 14).

N = 290 (1 + 0.08) ^14

= 290 (1.08)^14

= $851, 786, 151, 000