A certain bank account earns 44 percent annual interest comp
A certain bank account earns 4.4 percent annual interest, compounded continuously. You deposit 5000 dollars per year into the account, with your deposits taking place continuously over the course of the year. If A(T) denotes the amount of money in the account after years, write down a differential equation satisfied by A(T) .
A\'=?
A\'=?
Solution
FV = future value
PV = present value
i = interest rate
n = # compounding periods
FV = PV(1+i)n
A(T) = 5000(1+0.044)T
