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how long will the fund last?

how long will the fund last?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer specially part b.

 

Answer of both parts is more preferable.

Thanks

Suppose you start saving some money in an empty savings account that has an annual interest rate of 1% compounded continuously. Suppose you put $3000 into the account each year, deposited in small chunks very frequently throughout the year (so we assume the money is put in “continuously." The total money added each year is $3000, though). 1. , Write a differential equation modeling the amount of money A in the account (a) after t years. About how much money does the account have in 10 years? -, Suppose after 10 years you stop putting money into the savings account (b) and start using it to buy coffee and a snack almost every day. Say you spend $10 of it for 350 days of the year (so you can assume that $3500 is being removed per year "continuously"). Approximately how long will the fund last?
Transcribed Image Text:Suppose you start saving some money in an empty savings account that has an annual interest rate of 1% compounded continuously. Suppose you put $3000 into the account each year, deposited in small chunks very frequently throughout the year (so we assume the money is put in “continuously." The total money added each year is $3000, though). 1. , Write a differential equation modeling the amount of money A in the account (a) after t years. About how much money does the account have in 10 years? -, Suppose after 10 years you stop putting money into the savings account (b) and start using it to buy coffee and a snack almost every day. Say you spend $10 of it for 350 days of the year (so you can assume that $3500 is being removed per year "continuously"). Approximately how long will the fund last?
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