Mathematics

Mathematics

Problem

An investor deposits \$10{,}000 into an account that earns interest at a constant continuous rate. No further deposits or withdrawals are made. (a) Assuming the account grows according to the differential equation dAdt=0.05A\dfrac{dA}{dt}=0.05A, where A(t)A(t) is the account balance in dollars and tt is measured in years, determine the time required for the balance to reach \$18{,}000. Express your answer to the nearest hundredth of a year. (b) Describe what would happen to the time found in part (a) if the interest rate were increased to 6%6\% while all other conditions remained the same. Justify your conclusion without performing additional numeric calculations.

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