Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the compound growth rate forecast for 2021 discharges would be:
A) 14,400.
B) 14,479.
C) 14,560.
D) 19,600.
E) None of these is correct.

Question

Quizplus · Accepted Answer

The compound annual growth rate (CAGR) is calculated using the formula: CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. For this scenario, CAGR = (14,000/10,000)^(1/10) - 1 = 0.0347 or 3.47%. Applying this growth rate to 2020's discharges: 14,000 * (1 + 0.0347) = 14,479.

Assuming a Hospital Has Seen Discharges Increase from 10,000 in 2010