Question: A young person with no initial capital invests k dollars per year in a retirement account at an annual rate of return 0 . 0
A young person with no initial capital invests dollars per year in a retirement account at an annual rate of return Assume that investments are made continuously and that the return is compounded continuously.
a Write a differential equation which models the rate of the change of the sum with in years this will involve the parameter
Note: Use rather than since the latter confuses the computer.
b Use part a to determine a formula for the sum this will involve the parameter :
c What value of will provide dollars in years?
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