A Certain Small Country Has $20 Billion in Paper Currency

question 24

Short Answer

A certain small country has $20 billion in paper currency in circulation,and each day $70 million comes into the country's banks.The government decides to introduce new currency by having the banks replace old bills with new ones whenever old currency comes into the banks.Let denote the amount of new currency in circulation at time t with .Formulate and solve a mathematical model in the form of an initial-value problem that represents the "flow" of the new currency into circulation (in billions per day).

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Definitions:

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects cash from credit customers.

Sales Returns

Goods returned by customers to the seller after the sale has occurred, typically due to defects or dissatisfaction.