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(c) Solve to equate the values in (a) and (b) to find the time when Steven can buy the car.

(c) Solve to equate the values in (a) and (b) to find the time when Steven can buy the car.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Can someone please help me solve my part (c)? Im unable to solve it.

Question 2 Steven has struck a deal with his dad to buy his car when he can afford to. The car is valued at $55 000 today but depreciates at a continuously compounding rate of 1% per month (i.e. 1 — d = e−0.01). Steven has $9 000 in a bank account and plans to add $120 each month end. The bank pays interest at a continuously compounding rate of 1% per month (i.e. 1 + r = 0.0¹). (a) Formulate the value of the car as a finite difference equation and solve by calculating the Complementary Function and Particular Solution. (b) Formulate Steven's Savings amount in a similar way and solve. (c) Solve to equate the values in (a) and (b) to find the time when Steven can buy the car.
Transcribed Image Text:Question 2 Steven has struck a deal with his dad to buy his car when he can afford to. The car is valued at $55 000 today but depreciates at a continuously compounding rate of 1% per month (i.e. 1 — d = e−0.01). Steven has $9 000 in a bank account and plans to add $120 each month end. The bank pays interest at a continuously compounding rate of 1% per month (i.e. 1 + r = 0.0¹). (a) Formulate the value of the car as a finite difference equation and solve by calculating the Complementary Function and Particular Solution. (b) Formulate Steven's Savings amount in a similar way and solve. (c) Solve to equate the values in (a) and (b) to find the time when Steven can buy the car.
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