Question

Help please?

Since 2006, the amount of money spent at restaurants in a certain country has increased at a rate of 5% each year. In 2006​, about ​$320 billion was spent at restaurants. If the trend​ continues, about how much will be spent at restaurants in 2020?

Answer 1

Here's the formula you need:
y(t) = a × e ^ (k*t)
where y(t) is ending amount a=beginning amount
e=2.718281828 k=.05
t=14 years (2020 minus 2006)
2020 amount = 320,000,000 * 2.71828^(k*t)
2020 amount = 320,000,000 * 2.71828^.7
2020 amount = 320,000,000 * 2.0137517593
2020 amount = 644,400,563