A medical insurance service reports that health-care expenditures per capita were $2823 in 1990 and $3365 in 1993. Assume that this rate of growth continues. (a) Find the three-year growth factor a. (Round your answer to two decimal places.) Find an exponential model  E(x) = Cax  for the annual health-care expenditures per capita, where x is the number of three-year time periods since 1990. (b) Use the model found in part (a) to predict health-care expenditures per capita in 1996 and in 2002. (Round your answers to the nearest cent.)

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 4PT: An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded...
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A medical insurance service reports that health-care expenditures per capita were $2823 in 1990 and $3365 in 1993. Assume that this rate of growth continues.

(a) Find the three-year growth factor a. (Round your answer to two decimal places.)

Find an exponential model 

E(x) = Cax

 for the annual health-care expenditures per capita, where x is the number of three-year time periods since 1990.

(b) Use the model found in part (a) to predict health-care expenditures per capita in 1996 and in 2002. (Round your answers to the nearest cent.)

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