The worlds most largest national economy in nominal terms. Is the second largest in purchasing power parity (ppp).
representing 22 percent of nominal global gpd and 17 percent of gross world product (gwd)
Answer:
3 years
Explanation:
The computation of the time period is shown below
Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate
$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05
$2,000 = $14,688.4 × [1-(1.05)^-n]
1-(1.05)^-n = ($2000 ÷ $14,688.4)
(1.05)^-n = 1 - ($2000 ÷ $14,688.4)
( 1 ÷ 1.05)^n = 0.86383813
Now take the log to the both sides
n × log(1 ÷ 1.05) = log0.86383813
n = log0.86383813 ÷ log (1 ÷ 1.05)
= 3 years
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