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Exercise IV (30 + 10 = 40 points) A certain small country has $10 billion in paper currency in circulation, and each day $50 million
Exercise IV (30 + 10 = 40 points) A certain small country has $10 billion in paper currency in circulation, and each day $50 million comes into the country's banks. The government decides to introduce new currency by having the banks replace old bills with new ones whenever old currency comes into the banks. Since both old bills and new bills will come into the banks while the new currency is gradually introduced, we will need to solve a differential equation to track the amount of new currency in circulation at a given time. Your recitation leader will explain why the differential equation that r(t) (the amount of new currency in billions of dollars) satisfies the DE dr dt 0.005(10 - I). 1. Solve the differential equation to find r(t). Don't forget to find C. 2. At what time t will new bills make up 90% of the currency in circulation? Round to the nearest month
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