A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer "explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is directly proportional to the value of your investment that day". After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At home, you work out the numbers in your computer: you call I (t) the value of an investment that follows the scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme? O di O dt. = (S(t) + K)I(t) = KS(t)I(t) S(t) + KI(t) = (1 + S(t) + K)I(t)

A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer "explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is directly proportional to the value of your investment that day". After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At home, you work out the numbers in your computer: you call I (t) the value of an investment that follows the scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme? O di O dt. = (S(t) + K)I(t) = KS(t)I(t) S(t) + KI(t) = (1 + S(t) + K)I(t)

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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Please explain the answer alongside the steps. Thank you!

A scammer offers you a "deal" by which you can invest your money with them and earn returns. The scammer
"explains": "you actually earn the same return that the S&P500 produces on a given day and a premium which is
directly proportional to the value of your investment that day".
After rejecting the scammer's proposal, you were left curious to model the ludicrous scheme of the scammer. At
home, you work out the numbers in your computer: you call I(t) the value of an investment that follows the
scammer's, with t in days; and you denote by S(t) the return rate of the S&P500 (e.g. if the S&P went up 3% on a
day to, then S(to) = 0.03). Which of the following differential equations models the scammer's scheme?
dI
dt
dt
dt
dI
dt
=
=
(S(t) + K)I(t)
KS(t)I(t)
S(t) + KI(t)
(1 + S(t) + K)I(t)

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