As of 2015, per capita spending on health care in the United States was about $9

Question

As of 2015, per capita spending on health care in the United States was about $9000. If this amount increased by 6 percent a year, what would be the amount per capita spending for health care in 14 years?   

Table 1

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-b.jpg

Table 2

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-a.jpg   

Tabble 3

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-c.jpg

Table 4

http://lectures.mhhe.com/connect/0073382426/Chapter%201/exhibit_1-d.jpg

Use the appropriate Time Value of Money table [Exhibit 1-A,  Exhibit 1-B,  Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Explanation / Answer

Since we need to calculate the future value a amount after a specific period. We will use Exhibit1-a

From this table we need to find out multiple at period 14 under 6% column. which comes at : 2.261

So amount after 14 years is : 9000*2.261 = $20,349

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.