Question

Problem 6 n class we discussed how expensive it is to treat Hepatitis C if you decide to purchase the 12 week treatment Sovaldi developed by GILEAD.We mentioned that one option would beto sign a contract where the patient buys the treatment in monthly payments (just like buying a house) and therefore we called it "mortgage" Suppose that the government decides this is a good idea and that the patient should pay this in monthly payments during 10 years and an annual interest rate of 5 percent How much do you have to pay each month? Do the same for 15 years and 30 years

Answer 1

If the government decides to implement paying the hospital charges on monthly basis for 10years and an annual interest of 5% then it would be helpful for the patients because it will provide them time to pay it back slowly but with time they have to pay the interest too which makes the treatment more costly than if it was paid all together . It's just same as paying the loan back every monthly . The total cost will be more than the actual cost . It will not be same for 15and 30years because the long the duration the more expensive it becomes due to the interest to be paid .