A person withdraws money from a trust fund at a rate of $12,000 per year, and the account is earning interest at a rate of 5% per year, compounded continuously. Write a differential equation for the balance, B, in the account as a function of time, t, in years and use it to calculate if B=$100,000.

Question

A person withdraws money from a trust fund at a rate of $12,000 per year, and the account is earning interest at a rate of 5% per year, compounded continuously. Write a differential equation for the balance, B, in the account as a function of time, t, in years and use it to calculate  if B=$100,000.

Quizplus · Accepted Answer

The Answer is dB / dt = -$7000

A Person Withdraws Money from a Trust Fund at a Rate