A One-Time Investment of $200 at a 10% Annual Rate

question 39

Multiple Choice

A one-time investment of $200 at a 10% Annual Rate of Return yields $242 in two years. The $242 is known as the

• A) present value.
• B) compound value.
• C) principal plus interest.
• D) future value.
• E) annuity value

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Definitions:

Retrospective Reimbursement

A payment model where healthcare providers are paid after services are delivered, based on the costs of the provided services.

Fee-For-Service

A payment model where services are unbundled and paid for separately, often seen in healthcare settings.

Cost-Efficient

Economically advantageous, achieving the best possible outcome or value with the least waste of resources or effort.

Community Rating

A pricing strategy where health insurance premiums are not based on an individual’s health status or age but are the same for all members of a community.