Answer:
Rate of annual increase
Step-by-step explanation:
Given that the expression [tex]475\cdot1.076^t,[/tex] models the average annual per capita health care costs, in dollars, in the US as a function of the number of years t since 1970 .
1.076 in the expression [tex]475\cdot1.076^t,[/tex] 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, [tex]475\cdot1.076^{1}[/tex]
In Year 2, when t=2, [tex]475\cdot1.076^{2}=475\cdot1.076\cdot1.076=(Year 1)\cdot1.076[/tex]
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.
