I need help in Econ
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Answer:
= 0.05P - 150
Step-by-step explanation:
Let P(t) be the balance of the loan at time t years,
Let P(t) will satisfy
where r = annual interest rate
R = per year payment rate
R = $150/year
r = = 0.05
Now we have the following picture,
Interest Balance Payment
5% ⇒ P(t) ⇒ $150/year
(0.05)
Therefore, a linear ODE satisfied by P(t) is given by
= 0.05P - 150