This document discusses applications of first order differential equations to growth, decay, and continuous compound interest problems. It provides examples of using differential equations to model population growth, radioactive decay, and interest accumulating in bank accounts over time. Readers are given sample problems and prompts for additional practice problems related to these applications of first order differential equations.
This document discusses applications of first order differential equations to growth, decay, and continuous compound interest problems. It provides examples of using differential equations to model population growth, radioactive decay, and interest accumulating in bank accounts over time. Readers are given sample problems and prompts for additional practice problems related to these applications of first order differential equations.
This document discusses applications of first order differential equations to growth, decay, and continuous compound interest problems. It provides examples of using differential equations to model population growth, radioactive decay, and interest accumulating in bank accounts over time. Readers are given sample problems and prompts for additional practice problems related to these applications of first order differential equations.
This document discusses applications of first order differential equations to growth, decay, and continuous compound interest problems. It provides examples of using differential equations to model population growth, radioactive decay, and interest accumulating in bank accounts over time. Readers are given sample problems and prompts for additional practice problems related to these applications of first order differential equations.
Instructor Growth, Decay and Continuous Compound Interest Problems Let N(t) denote the amount of substance {or population) that is either growing or decaying. If we assume that dN/dt. the time rale of change of this amount of substance, is proportional to the amount of substance present, then dN/dt = kN or
where k is the constant of proportionality.
• We are assuming that N(t) is a differentiable, hence continuous, function of time. For population problems, where N(t) is actually discrete and integer- valued, this assumption is incorrect. Nonetheless, the equation still provides a good approximation to the physical laws governing such a system. Continuous Compound Interest Probem • A person places $20,000 in a savings account which pays 5 percent interest per annum, compounded continuously. Find (a) the amount in the account after three years, and (b) the time required for the account to double in value, presuming no withdrawals and no additional deposits. Continuous Compound Interest Example: • A person places $5000 in an account that accrues interest compounded continuously. Assuming no additional deposits or withdrawals, how much will be in the account after seven years if the interest rate is a constant 8.5 percent for the first four years and a constant 9.25 percent for the last three years? Seatwork • A depositor currently has $8000 and plans to invest it in an account that accrues interest continuously at the rate of 6.25 percent. How long will it take for the account to grow to $13,500? Radioactive Decay Problem • Radium decomposes at a rate proportional to the amount at any instant. In 100 years, 100 mg of radium decomposes to 96 mg. How many mg will be left after 100 years? Seatwork • Radium decomposes at a rate proportional to the amount present. If half of the original amount disappears after 1000 years, what is the percentage lost in 100 years? Population Growth Problem • The population of a certain country is known to increase at a rate proportional to the number of people presently living in the country. If after two years the population has doubled, and after three years the population is 20,000, estimate the number of people initially living in the country. Seatwork • The population of a country doubles in 50 years. How many years will it be five times as much? Assume that the rate of increase is proportional to the number of inhabitants.