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

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. The average annual growth rate is 23/4 = 5.75 restaurants per year. Over the next 5 years, this growth rate would add 5.75 * 5 = 28.75 restaurants to the 138 existing ones, resulting in approximately 167.75, which rounds to 172.

Chia Burgers Began Operations by Opening 115 Restaurants in Western