Trauma is defined by the individual person who experienced it true or false

Trauma is defined by the individual person who experienced it, TRUE

The expected cost is expected to go up 5%
That means you need to multiply the current cost by 1 + 5/100 = 1.05
2265 * 1.05 = 2378.25

I am assuming that the cost increase will begin in year 2. Here is another way to do it.

Take 5% of 2265
5/100 * 2265 = 113.25

Add this to 2265
2265 + 113.25 = 2378.25 which agrees with the previous method. If there is an increase in the first year, you are going to have to indicate the answers. The wording is ambiguous.

2378.25 <<<< answer.