A Man Opens a Savings Account That Earns Interest at an Annual

Multiple Choice

A man opens a savings account that earns interest at an annual rate of 6% compounded continuously. He plans to make continuous withdrawals at a rate of $300 per year. What will happen if his initial deposit is $5000? [Hint: Let f(x) be the savings account balance at time t, and determine the differential equation satisfied by f(t) .]

A) The balance will increase at an increasing rate until it reaches $18,000, at which point it will increase at a decreasing rate.
B) The balance will decrease until it runs out.
C) The balance will increase indefinitely.
D) The balance will remain at $5000 as long as the interest and withdrawals remain the same.
E) none of these