Question

The expression 475 * 1.076 ^ t the average annual per capita health care costs, in dollars, in the US as a function of the number of years since 1970. What does 1.076 represent in this expression?

Answer 1

Answer:

$Y(t)= 475 (1.076)^t$

Where Y(t) represent the average annual per capita health care costs

475 represent the initial amount for the average annual per capita health care costs

t represent the number of years since 1970

And 1.076 represent the growth factor given by:

$1+r = 1.076$

And solving for r we got:

$r = 1.076-1 =0.076$

So for this case we can say that the value 1.076 represent the growth factor.

Step-by-step explanation:

For this case we have the following model given:

$Y(t)= 475 (1.076)^t$

Where Y(t) represent the average annual per capita health care costs

475 represent the initial amount for the average annual per capita health care costs

t represent the number of years since 1970

And 1.076 represent the growth factor given by:

$1+r = 1.076$

And solving for r we got:

$r = 1.076-1 =0.076$

So for this case we can say that the value 1.076 represent the growth factor.

Answer 2

Answer:

the correct answer is C

Step-by-step explanation: