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1.If the coinsurance rate increases from 14% to 23%, this raises the effective money price by ____ percent. 2.At a 6% interest rate, ignoring depreciation,

1.If the coinsurance rate increases from 14% to 23%, this raises the effective money price by ____ percent.

2.At a 6% interest rate, ignoring depreciation, over a 4 year period a $74,000 investment must earn at least ____ to be economically viable.

3.At a 7% interest rate, ignoring depreciation, over a 9 year period a $88,000 investment must earn at least ____ to be economically viable.

4.Assume that a medical device has a useful life of 11 years, and it loses its real value at a constant rate (i.e. 1/11 of the original value per year). At a 9% interest rate, and including depreciation in the calculation, over a 8 year period a $80,000 investment must earn at least approximately ____ to be economically viable.

5.Assume that a machine has a useful life of 11 years, and it loses its real value at a constant rate (i.e. 1/11 of the original value per year). At a 3% interest rate, and including depreciation in the calculation, over a 6 year period a $100,000 investment must earn at least approximately ____ to be economically viable.

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