Suppose a rich uncle has left you A0 dollars which is invested at rate r compounded continuously.

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Suppose a rich uncle has left you A0 dollars which is invested at rate r compounded continuously. Show that if you make withdrawals amounting to d dollars per year (where d > r A0) the time required to deplete the account to zero is

What happens to the account when the annual withdrawal is not greater than r A0?

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Differential Equations and Linear Algebra

ISBN: 978-0131860612

2nd edition

Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West

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Question Posted: May 26, 2016 05:55 AM

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Suppose a rich uncle has left you A0 dollars which is invested at rate r compounded continuously.

Question:

In d- r Ao.

Step by Step Answer:

Setting A t 0 and solving for t gives When d rA 0 this equation is undefined as we have division by ...View the full answer

Differential Equations and Linear Algebra

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