A Sum Of $\$ 2,000$ Is Invested At $20 \%$ Interest If $A ( t )$

question 13

Multiple Choice

A sum of $\$ 2,000$ is invested at $20 \%$ interest. If $A ( t )$ is the amount of the investment at time $t$ for the case of continuous compounding, write a differential equation and an initial condition satisfied by $A ( t )$ .

• A) \(\frac { d A } { d t } = 20 A , \quad A ( 0 ) = 3,000\)
• B) \(\frac { d A } { d t } = 1,500 A , \quad A ( 0 ) = 2,000\)
• C) \(\frac { d A } { d t } = 0.20 A , A ( 0 ) = 200\)
• D) \(\frac { d A } { d t } = 0.20 A ( 0 ) , \quad A ( 0 ) = 2,000\)
• E) \(\frac { d A } { d t } = 0.20 A , \quad A ( 0 ) = 2,000\)

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