Answer :
By using compound interest formula, we can say that about 14,688 Starbucks shops in the US in 2020.
What is compound interest?
Compound interest is a type of interest that is calculated on both the principal amount and the accumulated interest of an investment or loan. It is different from simple interest, which is calculated only on the principal amount.
To find out how many Starbucks shops there should be in 2020, we can use the formula for compound interest:
A = P (1 + r/n)^(n*t)
Where:
A = the final amount (the number of Starbucks shops in 2020)
P = the initial amount (the number of Starbucks shops in 2005)
r = the annual interest rate (6% or 0.06)
n = the number of times interest is compounded per year (1, since it's compounded annually)
t = the time in years (15, from 2005 to 2020)
Plugging in the values, we get:
A = 7,302 (1 + 0.06/1)^(1*15)
A = 7,302 (1.06)^15
A = 7,302 (2.011357)
A = 14,687.85
Rounding this to the nearest whole number, we get:
There should be about 14,688 Starbucks shops in the US in 2020, assuming the annual growth rate of 6%.
To learn more about compound interest visit:
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