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) Rate of Change proportional to the function value at any given time dy = k$y dt y Kdependent variable as a function of time t t Ktime Mathematical Model y t = Aoek t Ao Kinitial value at t = 0 k Krelative growth / decay

Example : After an automobile is 1 year old, its rate of depreciation at any time is proportional to its value at that time. If an automobile was purchased on March 1, 1993, and its values on March 1, 1994 and March 1, 1995, were, respectively, $ 7000 and $5800, what is its expected value on March 1, 1999 ? Model : y t = 7000$ 29 t Its expected value on March 1, 1999 is y 5 = 7000 35 ( t is the time in years after 1994 ) 29 35

5

z 2733.68

2.) Newton's Law of Cooling dy = k$ T KTs rate of change of temperature of a dt body is proportional to the difference between its T Ktemperature of the body temperature and its surroundings T Ktemperature of surroundings s

y t = Ts CC ek t Ts CC = Ao

Example : A pot of water was initially boiling at 100o and was cooling in air at a temperature of 0o. After 20 min., the temperature of the water was 90o. (a) After how many minutes was the temperature of the water 80o ? (b) What was the temperature of the water after 1 hr. ? 9 9 9 Model : y t = 0 C100 (a) 80 = 100 , t = 42.36 (b) y = 100 10 10 10 o ( t is the time in minutes since the pot was boiling at 100 ) 3.) Bounded Growth / Learning Curve - rate of change proportional to the difference of max. amount that can be attained and what has been attained thus far dy = k$ A Ky dt A Kmaximum attainable value (asymptotic)

k y t = A KB eK t t /20 t /20 60 /20

= 72.9

A K B = Ao

Example : A new worker on an assembly line can do a particular task in such a way that if y units are dy = k$ 90 Ky , where k is a positive completed per day after t days on the assembly line, then dt constant and y ! 90 for all t R 0. On the day the worker starts, 60 units are completed, and on the fifth day, the worker completes 75 units. How many units does the worker complete on the ninth day ? Model : y t = 90 K30 4.) Interest Compounded Continuously 1 2

t /5

y 9 = 90 K30 A t = Aoer t

1 2

9 /5

= 81.38

r KAnnual Interest Rate compounded continuously i KEffective Annual Rate of Interest, i = er K1 Example : How long will it take an investment to double in value if the interest rate is 6 % compounded continuously ? What is the effective annual rate of interest ? 2$Ao = Ao$e.06 t t = 11.55 years, i = e.06 K1 = 6.18 %

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