Let Q be the amount in a mutual fund earning interest for t years at an annual interest rate of r, compounded continuously. If a continuous cash flow of Z dollars per year is withdrawn from the fund, then the rate of decrease of Q is given by the differential equation dQ/dt=rQ-Z
Let Q be the amount in a mutual fund earning interest for t years at an annual interest rate of r, compounded continuously. If a continuous cash flow of Z dollars per year is withdrawn from the fund, then the rate of decrease of Q is given by the differential equation dQ/dt=rQ-Z
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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Let Q be the amount in a mutual fund earning interest for t years at an annual interest rate of r, compounded continuously. If a continuous cash flow of Z dollars per year is withdrawn from the fund, then the rate of decrease of Q is given by the differential equation
dQ/dt=rQ-Z
Assume that the amount in the mutual fund has $2,000 initially and use the values r=0.06, P=$240:
(a) Solve the initial value problem using the method of integrating factor.
(b) Find the amount in the mutual fund when t=10.
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