Homework Answers
Given,
The total cost of the hospital stay for giving birth in 1950 = $107.00
The value of the above cost in 2020 dollars = $107*(F/P, 3.5%, 70) = $107*(1+0.035)70 = $1189.07
A Google result shows that the cost of delivering a baby with no complications(no health insurance) in 2020 = $10,800
The cost of delivering a baby in 2020 is almost 10 times the cost of delivering a baby back in 1950. The healthcare costs have increased manifold during the 70 year period.
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