How long, to the nearest year, will it take an investment in Japan to double its value if the interest is compounded every six months? Please round the answer to the nearest year. Country U.S. Japan Canada Korea Australia Yield 5.3% 1.5% 5.2% 5.4% 6.0%
A)47 years
B)46 years
C)42 years
D)51 years
E)43 years

Question

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 amount, 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 = 1, r = 1.5%, n = 2, and we want to find t such that A = 2. Plugging these values into the formula, we get 2 = 1(1 + 0.015/2)^(2t). Solving for t, we get t = 46.38 years. Rounding to the nearest year, we get 46 years.

How Long, to the Nearest Year, Will It Take an Investment