The table lists interest rates on long-term investments (based on 10-year government bonds) in several countries in 2004-2005. Assuming that you invest $13,000 in Japan, how long (to the nearest year) must you wait before your investment is worth $19,000 if the interest is compounded annually Round your answer to the nearest year. $$\begin{array} { | l | l | l | l | }
\hline \text { Country } & \text { U.S. } & \text { Japan } & \text { Canada } \
\hline \text { Yield } & 5.3 \% & 1.5 \% & 5.2 \% \
\hline
\end{array}$$
A)26 years
B) 19 years
C) 25 years
D) 22 years
E) 28 years

Question

The table lists interest rates on long-term investments (based on 10-year government bonds) in several countries in 2004-2005. Assuming that you invest $13,000 in Japan, how long (to the nearest year) must you wait before your investment is worth $19,000 if the interest is compounded annually  Round your answer to the nearest year. $$\begin{array} { | l | l | l | l | } 
\hline \text { Country } & \text { U.S. } & \text { Japan } & \text { Canada } \
\hline \text { Yield } & 5.3 \% & 1.5 \% & 5.2 \% \
\hline
\end{array}$$  
A)26 years
B) 19 years
C) 25 years
D) 22 years
E) 28 years

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal (initial investment), r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years.In this case, we have P = $13,000, A = $19,000, r = 1.5%, and n = 1 (since the interest is compounded annually). Solving for t, we get:19000 = 13000(1 + 0.015)^t19000/13000 = (1.015)^t1.4615 = (1.015)^tt = log(1.4615)/log(1.015)t = 25.03 yearsRounding to the nearest year, we get t = 25 years.

The Table Lists Interest Rates on Long-Term Investments (Based on 10-Year