Rahul deposits ₹10,000 in a bank that pays interest compounded continuously at a rate of r% per annum. The differential equation for the principal P is:
Rahul deposits ₹10,000 in a bank that pays interest compounded continuously at a rate of r% per annum. The differential equation for the principal P is:
- A. dP/dt = rP
- B. dP/dt = P(r/100)
- C. dP/dt = r/P
- D. dP/dt = 100r/P
Answer: B) dP/dt = P(r/100)
Explanation: Continuous compounding means the rate of change of principal is proportional to the principal. dP/dt = (r/100)P.
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