You Invest $2,500 in Your Nephew's Catering Business

question 107

Short Answer

You invest $2,500 in your nephew's catering business. He guarantees you a minimum return at a continuous interest rate of 4%. Of course, if the business continues to thrive, you will earn at a higher rate.
a) Write a differential equation for the minimum amount, B, of your return on investment at time t.
b) Solve the differential equation.
c) Graph the solution.

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