A student decides to save money for a trip to Uluru. She opens a savings account with $300, and sets up a daily automatic transfer of 2 from her regular account into her savings account. The bank pays 5.5% interest per year into her savings account, compounded continuously. The student plans to withdraw the money from the bank at the end of two years. She is, however, worried that she isn't saving enough, and decides to model the problem to find out how much she will have at the end of two years. Let M(t) be the amount of money in her savings account at time t. She opens the account at time t = 0. Assume that one year has 365 days. (a) Her first model is the following, with time in years: dM 0.06M+2, dt = M(0) = 300.

A student decides to save money for a trip to Uluru. She opens a savings account with $300, and sets up a daily automatic transfer of 2 from her regular account into her savings account. The bank pays 5.5% interest per year into her savings account, compounded continuously. The student plans to withdraw the money from the bank at the end of two years. She is, however, worried that she isn't saving enough, and decides to model the problem to find out how much she will have at the end of two years. Let M(t) be the amount of money in her savings account at time t. She opens the account at time t = 0. Assume that one year has 365 days. (a) Her first model is the following, with time in years: dM 0.06M+2, dt = M(0) = 300.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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