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Suppose we are interested in calculating the lifelong cost associated with lung cancer in patients who have been diagnosed with lung cancer. If the average
Suppose we are interested in calculating the lifelong cost associated with lung cancer in patients who have been diagnosed with lung cancer. If the average cost of living with lung cancer per patient were $20,000 and the discount rate is 5%, compute the total discounted cost incurred by the group of patients over the next 11 years.
Year | Patients surviving |
1 | 20 |
2 | 18 |
3 | 16 |
4 | 14 |
5 | 12 |
6 | 10 |
7 | 8 |
8 | 6 |
9 | 4 |
10 | 2 |
11 | 0 |
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