Question

Since 1985, the daily cost of patient care in community hospitals in the United States has increased about 8.1% per year. In 1985, these costs averaged $460 per day. What is the estimated daily cost of patient care in 2023, considering the same rate of increase?

a) $1,082.46

b) $1,460.52

c) $1,847.89

d) $2,356.74

Answer 1

The estimated daily cost of patient care in 2023, considering the 8.1% annual increase, is approximately $497.96.

Step-by-step explanation:

To find the estimated daily cost of patient care in 2023, considering the 8.1% annual increase, we can use the formula:

New cost = Old cost * (1 + rate of increase)

First, let's calculate the rate of increase:

Rate of increase = 8.1% = 0.081

Next, plug in the values into the formula:

New cost = $460 * (1 + 0.081)

New cost = $460 * 1.081

New cost = $497.96

Therefore, the estimated daily cost of patient care in 2023 is approximately $497.96.