Results 1 to 2 of 2

Math Help - Urgent! Need help with Differential Compound Interest Rate Problem!

  1. #1
    Newbie jojoyce's Avatar
    Joined
    Nov 2012
    From
    Canada
    Posts
    4

    Exclamation Urgent! Need help with Differential Compound Interest Rate Problem!

    I've been thinking about this problem for an hour and it's due in 2 hours!

    Find the amount in a savings account after one year if the initial balance in the account was $1000, the interest is paid continuously into the account at a nominal rate of 10% per annum(compounded continuously), and the account is being continuously depleted(by taxes say) at the rate of y^2 per million dollars per year. The balance in the account after t years is given by y=y(t). How large can the account grow? How long will it take the account to grow to half of this maximum balance?

    I've worked out that dy/dt=0.1y-y^2/10^6
    y=y^2/20-y^3/(3*10^6)

    I dont know what to do from here since I'm not really sure how to deal with the ys in the function equation above.
    ANY HELP will be greatly appreciated!!!!!!!!!!
    Thank you in advance!
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Master Of Puppets
    pickslides's Avatar
    Joined
    Sep 2008
    From
    Melbourne
    Posts
    5,234
    Thanks
    27

    Re: Urgent! Need help with Differential Compound Interest Rate Problem!

    \displaystyle \frac{dy}{dt} = 0.1y-10^{-6}y^2  \implies \frac{dy}{ 0.1y-10^{-6}y^2} = dt

    Break the LHS into partial fractions.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Compound interest problem
    Posted in the Math Forum
    Replies: 17
    Last Post: August 1st 2012, 06:16 AM
  2. Compound Interest problem
    Posted in the Business Math Forum
    Replies: 0
    Last Post: May 15th 2011, 10:51 PM
  3. Compound interest problem
    Posted in the Pre-Calculus Forum
    Replies: 12
    Last Post: December 11th 2009, 02:41 PM
  4. Compound Interest problem..please help..
    Posted in the Business Math Forum
    Replies: 2
    Last Post: September 1st 2009, 08:19 AM
  5. compound interest problem
    Posted in the Business Math Forum
    Replies: 1
    Last Post: October 31st 2008, 03:42 AM

Search Tags


/mathhelpforum @mathhelpforum