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SEPARATE VARIABLES and INTEGRATE a DIFFERENTIAL Equation in Finance
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YouTubeBill Kinney
SEPARATE VARIABLES and INTEGRATE a DIFFERENTIAL Equation in Finance
In this video, we continue solving the financial differential equation dA/dt = rA - w, where A(t) is the amount of money (in dollars), r is the continuously compounded annual interest rate (1/years), and w is the constant withdrawal rate in dollars per year. To do so, we separate variables to get dA/(rA - w) = dt. Then we integrate to get (1/r ...
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