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Describe the rate at which the balance is charging

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Reference no: EM131612635

Question: A bank account earns 5% annual interest, compounded continuously. Money is deposited in a continuous cash flow at a rate of $1200 per year into the account.

(a) Write a differential equation that describes the rate at which the balance B = f(t) is changing.

(b) Solve the differential equation given an initial balance B0 = 0.

(c) Find the balance after 5 years.

Reference no: EM131612635

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