1. Suppose you invested $2,400 in an account that pays 9.00% interest, compounded semiannually. After 10.0 years, how much money will be in the account assuming you make no additional deposits or withdrawals to or from your account?
2. ABC Medical Center, has estimated the following costs for its inpatient services: Fixed costs $15,000,000; Variable cost per inpatient day $150.
The hospital expects to have 10,000 inpatient days next year. What is the hospital’s underlying cost structure? What are the hospitals expected total costs? What are the hospital’s estimated total costs at 12,500 inpatient days? At 17,500 inpatient days? What is the average cost per inpatient day at 12,500; 15,000, and 17,500 inpatient days?