A Bank Account Initially Containing $4000 Earns Interest at a Continuous

question 120

Multiple Choice

A bank account initially containing $4000 earns interest at a continuous rate of 6% per year. Deposits are made into the account at a constant rate of $500 per year. Which is the differential equation for the balance, B, in the account as a function of time, t, in years?

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Definitions:

Bankruptcy

The process by which an insolvent person voluntarily or involuntarily transfers assets to a trustee for distribution to creditors.

Builder's Lien Act

Legislation that gives builders and contractors a right to secure payment for labor and materials through a lien on the property they have worked on.

Attachment

Under the Personal Property Security Act, the situation in which value has been given pursuant to the contract, giving the creditor a claim against the assets used as security if there is a default by the debtor.

Purchase Money Security Interest

A legal claim or lien on collateral provided by a borrower to secure a loan used to purchase the collateral.