- #1
JNBirDy
- 38
- 0
Homework Statement
You borrow money from a friend at a continuous interest rate of r% per month. You want to pay your friend back as quickly as you can at the beginning, but reduce your payment rate over time. You decide to pay off at a continuously decreasing rate given by K₀e[itex]^{-at}[/itex], in dollars per month.
Write a differential equation that describes how much you owe and solve it.
Homework Equations
None
The Attempt at a Solution
Let S be the amount borrowed -
dS/dt = rS - K₀e[itex]^{-at}[/itex]
S' - rS = -K₀e[itex]^{-at}[/itex]
S'(I(x)) - rS(I(x)) = -K₀e[itex]^{-at}[/itex](I(x))
Se[itex]^{-rt}[/itex] = -K₀[itex]\int[/itex]e[itex]^{-t(a+r)}[/itex]
Se[itex]^{-rt}[/itex] = ...
This is where I get stuck, I have don't understand how to integrate -K₀[itex]\int[/itex]e[itex]^{-t(a+r)}[/itex], any hints?