Chia Burgers began operations by opening 115 restaurants in Western Canada at the end of its first year of operations. By the end of year 2, an additional 5 restaurants were opened. By the end of year 3, there were 130 restaurants operational. At the end of year 5, there were 138 total restaurants.

If, over the next five years, eating establishments are expected to grow at the annual growth rate as they did during years 1 to 5, forecast the number of eating establishments at the end of year 10.

Question

Chia Burgers began operations by opening 115 restaurants in Western Canada at the end of its first year of operations. By the end of year 2, an additional 5 restaurants were opened. By the end of year 3, there were 130 restaurants operational. At the end of year 5, there were 138 total restaurants.

If, over the next five years, eating establishments are expected to grow at the annual growth rate as they did during years 1 to 5, forecast the number of eating establishments at the end of year 10.

Quizplus · Accepted Answer

The growth from year 1 to year 5 is from 115 to 138 restaurants, which is an increase of 23 restaurants over 4 years, giving an average annual growth rate of 5.75 restaurants per year. Applying this growth rate for the next 5 years (5.75 * 5 = 28.75), the forecasted number of restaurants at the end of year 10 is approximately 138 + 28.75 = 166.75, which rounds to 172.

Chia Burgers Began Operations by Opening 115 Restaurants in Western