If an amount Po is invested in the Mandelbrot Bond Fund and interest is compounded continuously at 6.2% per year, the balance P grows at the rate given by dP = 0.062P dt a) Find the function that satisfies the equation. Write it in terms of Po and 0.062. b) Suppose that $500 is invested. What is the balance after 1 year? After 3 years? c) What is the rate of change of the balance after 1 year? After 3 years?
If an amount Po is invested in the Mandelbrot Bond Fund and interest is compounded continuously at 6.2% per year, the balance P grows at the rate given by dP = 0.062P dt a) Find the function that satisfies the equation. Write it in terms of Po and 0.062. b) Suppose that $500 is invested. What is the balance after 1 year? After 3 years? c) What is the rate of change of the balance after 1 year? After 3 years?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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Transcribed Image Text:If an amount Po is invested in the Mandelbrot Bond Fund and interest is compounded continuously at 6.2% per year, the balance P grows at the rate given by
dP
= 0.062P
dt
a) Find the function that satisfies the equation. Write it in terms of Po and 0.062.
b) Suppose that $500 is invested. What is the balance after 1 year? After 3 years?
c) What is the rate of change of the balance after 1 year? After 3 years?
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