Suppose There Is a New Kind of Savings Certificate That $\frac{d B}{d t}=B(0.015+0.01 t)$

question 102

Multiple Choice

Suppose there is a new kind of savings certificate that starts out paying 1.5% annual interest and increases the interest rate by 1% each additional year that the money is left on deposit.(Assume that interest is compounded continuously and that the interest rate increases continuously.) Which of the following differential equations gives the rate of change in the balance B(t) at time t?

• A) \(\frac{d B}{d t}=B(0.015+0.01 t)\)
• B) \(\frac{d B}{d t}=B(0.015 t+0.01)\)
• C) \(\frac{d B}{d t}=B(0.025) t\)
• D) \(\frac{d B}{d t}=B(0.025+0.01 t)\)

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