Question

The total expenditure for health care can be modeled by:
H=624e^0.07t where t is the number of years after the year 2000. What will be the value of H in the year 2020?

Answer 1

Replace t with 20 and evaluate since 2020 is 20 years after 2000

Answer 2

Looks like 2000*exp(1.4) = 8110 for t = 20

this is approx 7% per year growth, and "rule of 72" indicates things that grow at x percent per t (year) double when x t = 72.

Here, doubles approx every ten years, quadruples in 20.

[Exponential form is continuous compounding, rather than yearly.]