Question

exponential models
guided practice
type your answer and then click or tap done.
use the ^ symbol (shift+6 on the keyboard) to signify an exponent. for example, for 2 to the third power, enter 2^3.
example
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 growth factor b for this rate of increase in cost?

rate of increase	8.1%
exponential growth function	?

Explanation:

Step1: Recall the formula for growth factor

The formula for the growth factor \( b \) when the rate of increase is \( r \) (expressed as a decimal) is \( b = 1 + r \).

Step2: Convert the percentage to a decimal

The rate of increase \( r \) is \( 8.1\% \), which as a decimal is \( r=\frac{8.1}{100}=0.081 \).

Step3: Calculate the growth factor

Using the formula \( b = 1 + r \), substitute \( r = 0.081 \). So \( b=1 + 0.081=1.081 \).

Answer:

1.081