ow to do question ii?

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
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How to do question ii?

A savings account has an
initial balance of R5 000
and earns interest at a
nominal annual rate of
10% paid continuously
into the account.
The
account is also being
continuously depleted by
service charges at
a rate
of R100 per year.•
i) Through solving a DE
that models the balance
y (t) in the account at
time t, and evaluating
the solution for t=12,
the balance in the
account will be
R
after twelve years.
Transcribed Image Text:A savings account has an initial balance of R5 000 and earns interest at a nominal annual rate of 10% paid continuously into the account. The account is also being continuously depleted by service charges at a rate of R100 per year.• i) Through solving a DE that models the balance y (t) in the account at time t, and evaluating the solution for t=12, the balance in the account will be R after twelve years.
i) Through solving a DE
that models the balance
y (t) in the account at
time t, and evaluating
the solution for t=12,
the balance in the
account will be
R
after twelve years.
ii) It will take
years for the balance in
the account to be R16
500.
Transcribed Image Text:i) Through solving a DE that models the balance y (t) in the account at time t, and evaluating the solution for t=12, the balance in the account will be R after twelve years. ii) It will take years for the balance in the account to be R16 500.
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