You invest $20,000 in the bank with a 5% annual interest rate, compounded continuously and you withdraw $1100 per year, spread uniformly throughout the year. a. Find the initial value problem which describes the amount of money, P(t), that you have in the bank at time t. b. How long it would take to run out of money? (That is for what t is P(t)=0) c. Repeat part a and part b if, instead of $1100 per year, you withdrew $1200 per year instead.

You invest $20,000 in the bank with a 5% annual interest rate, compounded continuously and you withdraw $1100 per year, spread uniformly throughout the year. a. Find the initial value problem which describes the amount of money, P(t), that you have in the bank at time t. b. How long it would take to run out of money? (That is for what t is P(t)=0) c. Repeat part a and part b if, instead of $1100 per year, you withdrew $1200 per year instead.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section: Chapter Questions

Problem 12CC: Suppose that the initial size of a population is n0 and the population grows exponentially. Let n(t)...

See similar textbooks

Similar questions

To the nearest whole number, what is the initial value of a population modeled by the logistic equation P(t)=1751+6.995e0.68t ? What is the carrying capacity?
Suppose that the initial mass of radioactive substance is m0 and the half-life of the substance is h. Let m(t) be the mass remaining at time t. a What is meant by the half-life h? b Write a formula for m(t) in terms of the half-life h. c Write a formula for the relative decay rate r in terms of the half-life h. d Write a formula for m(t) in terms of the relative decay rate r.
Cesium-137 has a half-life of about 30 years. If we begin with 200 mg of cesium-137, will it take more or less than 230 years until only 1 milligram remains?
The table shows the mid-year populations (in millions) of five countries in 2015 and the projected populations (in millions) for the year 2025. (a) Find the exponential growth or decay model y=aebt or y=aebt for the population of each country by letting t=15 correspond to 2015. Use the model to predict the population of each country in 2035. (b) You can see that the populations of the United States and the United Kingdom are growing at different rates. What constant in the equation y=aebt gives the growth rate? Discuss the relationship between the different growth rates and the magnitude of the constant.