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

question 29

Short Answer

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 $12,000 in Japan, how long (to the nearest year) must you wait before your investment is worth $18,000 if the interest is compounded annually $$\begin{array} { | l | l | l | l | } \hline \text { Country } & \text { U.S. } & \text { Japan } & \text { Canada } \\\hline \text { Yield } & 5.3 \% & 1.5 \% & 5.2 \% \\\hline\end{array}$$
__________ year(s)

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Definitions:

Consumption

The process or activity of using goods and services to satisfy wants or needs.

Cream

The fatty part of milk, gathered at the top, used in cooking or as a spread.

Strawberries

A sweet, soft, red fruit with a seed-studded surface, commonly consumed fresh, in preserves, or as part of various dishes and desserts.

Interest Rate

The percentage of an amount of money which is charged for its use per some period of time, often annually.