By using the compound interest formula one can conclude that if the LTC center accepted Mr. Richman’s gift now and invested it in a savings account with a 14% annual compounded interest rate, the LTC center would have a total of $481,790 after 12 years. If the LTC center deferred accepting the gift now and instead chose to accept the $300,000 upon Mr. Richman’s death, they would need to invest the money for 6.27 years in order to earn the same amount. Therefore, it is fair to say that although the LTC center will have to wait until Mr. Richman’s unfortunate demise to receive the gift, they could earn interest about twice as with the larger gift. Healthcare reform has lead to extensive cutbacks in reimbursement from Medicare, Medicaid, and private
