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:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life, reducing its book value on the balance sheet.

Parent Entity

A company that holds a controlling interest in another company or companies, usually through majority ownership of shares.

Intragroup Transaction

Intragroup transactions refer to transactions between entities within the same group, such as sales, services, or financing activities, which are usually eliminated in consolidated financial statements.