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An Investment Earns 25% Interest Per Year y=0.25y10,000?y ^ { \prime } = 0.25 y - 10,000 ?

Question 120

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An investment earns 25% interest per year. Every year $10,000 is withdrawn in order to pay dividends to the investors. Set up a differential equation satisfied by f(t), the amount of money invested at time t. Does this equation accurately describe this situation: y=0.25y10,000?y ^ { \prime } = 0.25 y - 10,000 ?

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