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Differential EquationsChallengeModels & Qualitative Behavior

Models & Qualitative Behavior · Challenge problem

An endowment earns interest compounded continuously at 5%5\% per year and pays out continuously, starting at 10001000 dollars per year and rising with inflation at 3%3\% per year, so its balance obeys B′=0.05B−1000e0.03tB' = 0.05B - 1000e^{0.03t}. What is the smallest starting balance B(0)B(0) for which the endowment never runs out of money?