Since 2006 , the amount of money spent at restaurants in a certain country has increased at a rate of 4 % each year. In 2006 , about $500 billion was spent at restaurants. If the trend continues, about how much will be spent at restaurants in 2016 ?

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