Rate of annual increase
Step-by-step explanation:
Given that the expression Β models the average annual per capita health care costs, in dollars, in the US as a function of the number of years t since Β 1970
.
1.076 in the expression represents the rate of annual increase of the annual per capita health care costs (in dollars).
Take for example,
In Year 1, when t=1,
In Year 2, when t=2,
Once we know the annual per capita health care costs for the previous year, we simply multiply it by 1.076 or for any number of years, raise it to t years.