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Linear Algebra for MATH 308
Lecture 1: Vectors, Linear Independence, and Spanning Sets
Lecture 2: Operations with Matrices and Vectors
Lecture 3: Systems of Equations
Lecture 4: Determinant
Lecture 5: Eigenvectors and Eigenvalues
Lecture 6: Matrix Inverses and Diagonalization
Lecture 7: Systems of Differential Equations
Lecture 8: Systems of Differential Equations
Quantitative Finance
Several Variables Calculus
Section 1: Functions of Several Variables
Section 2: Limits and Continuity
Section 3: Partial Derivatives
Section 4: Tangent Planes and Linear Approximations
Section 5: The Chain Rule
Section 6: Directional Derivatives and the Gradient Vector
Section 7: Maximum and Minimum Values
Section 8: Lagrange Multipliers
Differential Equations
Section 1: Integrating Factor
Section 2: Separable Equations
Section 3: Compound Interest
Section 4: Variation of Parameters
Section 5: Systems of Ordinary Differential Equations
Section 6: Matrices
Section 7: Systems of Equations, Linear Independence, and Eigenvalues & Eigenvectors
Section 8: Homogeneous Linear Systems with Constant Coefficients
Section 9: Complex Eigenvalues
Section 10: Fundamental Matrices
Section 11: Repeated Eigenvalues
Section 12: Nonhomogeneous Linear Systems
Mathematical Probability
Section 1: Probabilistic Models and Probability Laws
Section 2: Conditional Probability, Bayes’ Rule, and Independence
Section 3: Discrete Random Variable, Probability Mass Function, and Cumulative Distribution Function
Section 4: Expectation, Variance, and Continuous Random Variables
Section 5: Discrete Distributions
Section 6: Continuous Distributions
Section 7: Joint Distribution Function, Marginal Probability Mass Function, and Uniform Distribution
Section 8: Independence of Two Random Variables, Covariance, and Correlation
Section 9: Conditional Distribution and Conditional Expectation
Section 10: Moment Generating Function
Section 11: Markov’s Inequality, Chebyshev’s Inequality, and Weak Law of Large Numbers
Section 12: Convergence and the Central Limit Theorem
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Section 3: Compound Interest
Section 3: Compound Interest
Instructions
First, you should watch the concepts videos below explaining the topics in the section.
Second, you should attempt to solve the exercises and then watch the videos explaining the exercises.
Last, you should attempt to answer the self-assessment questions to determine how well you learned the material.
When you have finished the material below, you can start on the
next section
or return to the
main differential equations page
.
Concepts
Using differential equations to solve problems for compound interest
Solving compound interest problems when deposits are made at regular intervals
Links & Resources
Return to Differential Equations Page
Return to Mini-Course Main Page
Watch Concepts Video 1
Watch Concepts Video 2
Exercises
Directions:
You should attempt to solve the problems first and then watch the video to see the solution.
Suppose we open an IRA at age 25 and make annual investments of $2,000 thereafter in a continuous manner. Suppose the rate of return is 8%. What will be the balance at age 65?
Show Solution
\(25,000\left(e^6-1\right) \approx $588,313\)
Watch Video Solution
Self-Assessment Questions
Directions:
The following questions are an assessment of your understanding of the material above. If you are not sure of the answers, you may need to rewatch the videos.
Set up an IVP for the amount of balance at \(t\) year if the initial deposit is $1000 and the annual rate of interest is 2%, and solve it assuming the interest is compounded continuously.
What is we continuously withdraw at a rate of $100 per year in addition to the assumptions of the previous part?
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