In Exercises use the result of Exercise 26.

Data from in Exercise 26

A large corporation starts at time t = 0 to invest part of its receipts continuously at a rate of P dollars per year in a fund for future corporate expansion. Assume that the fund earns r percent interest per year compounded continuously. So, the rate of growth of the amount A in the fund is given by

where A = 0 when t = 0. Solve this differential equation for A as a function of t.

Find A for the following.

(a) P = $275,000,  r = 8%, t = 10 years

(b) P = $550,000, r = 5.9%, t = 25 years

Transcribed Image Text:

dA dt = rA + P