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 if the corporation needs $1,000,000 and it can invest $125,000 per year in a fund earning 8% interest compounded continuously.

Transcribed Image Text:

dA dt = rA + P