17 Oct 1. ABC Outpatient Clinic is considering a capitated agreement with an insurance company where the clinic would provide out
| 1. ABC Outpatient Clinic is considering a capitated agreement with an insurance company where the clinic would provide outpatient coverage to a 1,000-member plan at $1500 per member per month. Variable costs are projected at $750 per clinic visit, and fixed costs allocated to the agreement are $250,000 per month. What is the break-even point in volume of clinic visits for a month? |
| ABC Nursing Home borrows $250,000 for 2 years at 3 percent annual interest rate. How much interest will ABC Nursing Home pay for the loan? |
| interest = amount borrowed * annual interest rate * years
3. ABC Physical Therapy Clinic wants to invest $200,000. What is the future value (FV) compounded annually at 9 percent for five years? What is the FV compounded semiannually at 9 percent for five years?
FV = PV(1 + i/m)^mn |
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