INITIAL VALUE PROBLEM in FINANCE can be solved with SEPARATION of VARIABLES
1:01
YouTubeBill Kinney
INITIAL VALUE PROBLEM in FINANCE can be solved with SEPARATION of VARIABLES
In this video, we take a financial differential equation with an initial condition (IVP) dA/dt = rA - w, A(0)=A0 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. We ask: How do you solve this Initial Value Problem? The Method ...
1K views1 week ago
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