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David has £5000 that he wishes to save for six years. Bank A offers him an interest rate of 4% per annum compounded monthly. Bank B offers him an interest rate of 3.95% per annum compounded continuously. (a) Determine how much David would have in each bank after six years.
(b) Which Bank would give David the most interest? How much more interest?
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(b) Suppose that the initial conditions are as follows: y0 = 0 and et = 0 for t= 0. Impose the initial conditions in order to find the general solution.
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