A life insurance company invests $5000 in a bank account in order to fund a death benefit of $20,000. Growth in the investment over time can be modeled by the differential equation

where i is the interest rate and A(t) is the amount invested at time t (in years). Calculate the interest rate that the investment must earn in order for the company to fund the death benefit in 24 years. Choose one of the following.

(a) -1n 2/12

(b) -1n 2/24

(c) 1n 2/24

(d) 1n 2/12
(e) 1n 2/6

Transcribed Image Text:

dA dt Ai,