A Man Opens a Savings Account That Earns Interest at an Annual

question 15

Multiple Choice

A man opens a savings account that earns interest at an annual rate of 6% compounded continuously. He plans to make continuous withdrawals at a rate of $300 per year. What will happen if his initial deposit is $5000? [Hint: Let f(x) be the savings account balance at time t, and determine the differential equation satisfied by f(t) .]

• A) The balance will increase at an increasing rate until it reaches $18,000, at which point it will increase at a decreasing rate.
• B) The balance will decrease until it runs out.
• C) The balance will increase indefinitely.
• D) The balance will remain at $5000 as long as the interest and withdrawals remain the same.
• E) none of these

---

Definitions:

Authority Figures

Individuals or entities that hold power or influence over others, often seen in positions such as teachers, police, leaders, and parents, whom others are expected to obey or respect.

Rewards

Benefits or compensations given for meeting certain criteria or achievements, often used as motivation.

Electric Shock

A sudden discharge of electricity through a part of the body, causing a swift and typically painful reaction.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.