The annual rate of increase of an investment's value is proportional to its value, specifically 3.5% of the value. V V\,V is the value in thousands of pounds and t t\,t is the time in years.
Write down a differential equation for this relationship.
Show that V=Ae0.035tV = Ae^{0.035t}V=Ae0.035t where A A\,A is a constant.
Given that the initial value of the investment is £12,000. Find the value after 5 years, giving your answer to the nearest £10.
Practise Edexcel A Level Maths 11.11 Modelling with Differential Equations with exam-style questions for A Level Maths. 51 questions, matched to the Edexcel A Level Maths (9MA0) specification and written in Paper 1, Paper 2 and Paper 3 style. Every question includes a full worked solution and mark scheme, so you can see where marks are awarded rather than just whether you got the answer right.
