Problem
According to figures compiled by the World Bank, per capita real income in the U.S. was $15,400 in 1984, while the corresponding figure for Japan was $10,600. Between 1965 and 1984, per capita real income in the U.S. grew at an annual rate of 1.7 percent (using annual compounding), while the corresponding figure for Japan was 4.7 percent.
1. If these two growth rates remain constant at their 1965-84 levels, in what year will per capita real income be the same in these two countries? (Again, use annual compounding, and use hundredths of a year.)
2. What will be the common per capita real income of these two countries at that date?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.