Let y(t) represent your bank account balance, in dollars, after t years. Suppose you start with $40000 in the account. Each year the account earns 7% interest, and you deposit $8000 into the account.

This can be modeled with the differential equation:

$\displaystyle \frac{{{\left.{d}{y}\right.}}}{{{\left.{d}{t}\right.}}}={0.07}{y}+{8000}$
$\displaystyle {y}{\left({0}\right)}={40000}$

Solve this differential equation for y(t)

y(t) = Preview Question 6