Since 2004, the amount of money spent at restaurants in a certain country has increased at a rate of 7% each year. In 2004, about $360 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2012?
To find out how much will be spent at restaurants in 2012, we need to calculate the increase in spending each year.
Since the money spent at restaurants increases at a rate of 7% each year, the total spending in 2012 can be calculated as follows:
In 2004, the spending was $360 billion.
In 2005, the spending increased by 7%, so the new spending was $360 billion + 0.07 * $360 billion = $360 billion + $25.2 billion = $385.2 billion.
In 2006, the spending increased by 7% again, so the new spending was $385.2 billion + 0.07 * $385.2 billion = $385.2 billion + $26.964 billion = $412.164 billion.
And so on...
We can continue this calculation for each year until we reach 2012:
In 2004: $360 billion
In 2005: $360 billion + $25.2 billion = $385.2 billion
In 2006: $385.2 billion + $26.964 billion = $412.164 billion
In 2007: $412.164 billion + $28.84908 billion = $441.01308 billion
In 2008: $441.01308 billion + $30.8709146 billion = $471.8849946 billion
In 2009: $471.8849946 billion + $33.03214962 billion = $504.91714422 billion
In 2010: $504.91714422 billion + $35.346201096 billion = $540.263345316 billion
In 2011: $540.263345316 billion + $37.82143422512 billion = $578.08477954112 billion
And finally, in 2012: $578.08477954112 billion + $40.4670345708872 billion = $618.5518141110072 billion.
Therefore, about $618.552 billion will be spent at restaurants in 2012, when the trend continues.