Posted by **help please.** on Wednesday, April 25, 2012 at 4:25am.

The proprietor of Carson Hardware Store has decided to set up a sinking fund for the purpose of purchasing a computer 2 yr from now.

It is expected that the purchase will involve a sum of 40000 dollars.

The fund grows at the rate of

dA/dt= rA+P

where A denotes the size of the fund at any time t,r is the annual interest rate earned by the fund compounded continuously, and P is the amount (in dollars) paid into the fund by the proprietor per year (assume this is done on a frequent basis in small deposits over the year so that it is essentially continuous).

If the fund earns 11 %interest per year compounded continuously, determine the size of the yearly investment the proprietor should pay into the fund.

## Answer this Question

## Related Questions

- Math - The management of Gibraltar Brokerage Services anticipates a capital ...
- math - The management of Gibraltar Brokerage Services anticipates a capital ...
- accounting - A bond sinking fund investment is started on January 5, 2010, by ...
- accounting - A bond sinking fund investment is started on January 5, 2010, by ...
- college - A company is considering the purchase of a forest that is estimated to...
- Computer hardware - What circumstance would be the only reason for one to toil ...
- Algebra - The set S= {AAA,AA,C,D} represents the sizes of batteries a hardware ...
- math - You make a purchase at a local hardware store, but what you've bought is ...
- Math - A man goes into a store and says, " If you give me as much money as I ...
- economics - Give an example of a fairly major purchasing decision you've made ...

More Related Questions