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 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.

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 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.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

P(c < or equal to Z < or equal to -.65) = .2395 Please help me solve this as clearly as possible. I want to understand.
Please prove it again.I can't understand it.
Question 1 and 2show all work please
Please help on all the parts of the problem!!
How do I solve C - the P-value??Thank you.
For the paraboloid S = {(x, y, z): z = x² + y²2} and V = {(x, y, z): x > 0} find two different local parametrizations of VS by solving the equation z = x² + y² for one variable in terms of the other. For each, define and draw a picture of U and specify x(u, v).
Can you help me construct a method of how can I solve a question base on the Variation of Parameters?
*look carefully to tell the difference between the two problems.