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Differential EquationsChallengeFirst-Order Equations

First-Order Equations · Challenge problem

A fund earns interest at 5%5\% per year, compounded continuously, and pays out money continuously at the growing rate 1000e0.03t1000e^{0.03t} dollars per year (tt in years). Its balance therefore obeys A′=0.05A−1000e0.03tA'=0.05A-1000e^{0.03t}. What is the smallest initial balance A(0)A(0), in dollars, for which the balance never becomes negative?