Problem

Data from an independent research company found that the annual cost per worker for insurance (health, life, liability, etc.) was increasing according to the function $\mathrm{f}(\mathrm{x})=68.79 e^{0.39 \mathrm{x}}$, where $\mathrm{f}(\mathrm{x})$ is the cost in dollars per year at time $\mathrm{x}$, and $x$ is the number of years measured from the beginnning of the year 1996. That is, $x=0$ corresponds to the start of 1996. Find the total increase in costs during the next 8 years, beginning in 1996.

The total increase in costs is $\$ \square$.
(Round to the nearest cent as needed.)

Answer

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Answer

Final Answer: The total increase in costs is \(\boxed{1489.05}\).

Steps

Step 1 :Given the function \(f(x) = 68.79 e^{0.39x}\), where \(f(x)\) is the cost in dollars per year at time \(x\), and \(x\) is the number of years measured from the beginning of the year 1996.

Step 2 :We need to find the total increase in costs during the next 8 years, beginning in 1996.

Step 3 :To do this, we calculate the cost at the beginning and at the end of 8 years.

Step 4 :The cost at the beginning of 1996 is \(f(0) = 68.79\).

Step 5 :The cost at the end of 2003 is \(f(8) = 1557.8444556540358\).

Step 6 :The total increase in costs is the cost at the end minus the cost at the beginning, which is \(1557.8444556540358 - 68.79 = 1489.0544556540358\).

Step 7 :Rounding to the nearest cent, the total increase in costs over the next 8 years is approximately $1489.05.

Step 8 :Final Answer: The total increase in costs is \(\boxed{1489.05}\).

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