Suppose that in the effort to retain nurses, a hospital in Ohio considers offering an annual raise to the full-time nurses. Assume that the typical nurse stays with the hospital for 5 years, currently makes $1,500 a week and would be able to make $5200 week as a travelling nurse for the next 12 weeks (with no additional expenses and with the possibility to go back to the regular work at $1,500 immediately after that). If nurses discount future at 2% a year, what should be the raise to induce the nurse to stay with the hospital?

Name: Suppose that in the effort to retain nurses, a hospital in Ohio consid
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Description: Suppose that in the effort to retain nurses, a hospital in Ohio considers offering an annual raise to the full-time nurses. Assume that the typical nurse stays with the hospital for 5 years, currently makes $1,500 a week and would be able to make $52

Typical nurse stays with the hospital for 5 years currently, makes $1,500 a week She would be able to make $5200 a week as a travelling nurse for the next 12 weeks with no additional expenses and with the possibility to go back to the regular work at $1,500 immediately after that We have to find the raise to induce the nurse to stay with the hospital?Let the raised amount that the Ohio hospital gives = x. Number of weeks in 5 years =5*52=260 weeks discount factor per week = 252%=0.039=0.039% If the nurse decides to go for 12 weeks as travelling nurse and then come back in 13th week and work for the remaining part of 5 years, her pay (discounted would be) : =principle amountrate/100×1-11+rate/100n+principle amount1rate1/100×1-11+rate1/100n=52000.00039×1-11+0.0003912+15000.00039×1-11+0.00039248=13333333.33×1-0.995331842+3846153.846×1-0.907827274=62242.10344+354510.4816=$416752.5851 to induce the nurse to stay with the hospital the x amount needs to be so that its discounted value is at least $416752.5851 x0.00039*1-11+0.00039260≥416752.5851x0.00039≥416752.58511-0.903589393x0.00039≥4322684.004x≥4322684.004*0.00039x≥$1685.846762 Hence, the raised amount should be $1685.846762

Answered: Suppose that in the effort to retain…

Algebra and Trigonometry (6th Edition)

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ISBN:9780134463216

Author:Robert F. Blitzer

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ChapterP: Prerequisites: Fundamental Concepts Of Algebra

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Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Suppose that in the effort to retain nurses, a hospital in Ohio considers offering an annual raise to the full-time nurses. Assume that the typical nurse stays with the hospital for 5 years, currently makes $1,500 a week and would be able to make $5200 week as a travelling nurse for the next 12 weeks (with no additional expenses and with the possibility to go back to the regular work at $1,500 immediately after that). If nurses discount future at 2% a year, what should be the raise to induce the nurse to stay with the hospital?

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