A certain small country has $20 billion in paper currency in circulation, and each day $70 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. Let denote the amount of new currency in circulation at time t with . Formulate and solve a mathematical model in the form of an initial-value problem that represents the "flow" of the new currency into circulation (in billions per day).

Question

A certain small country has $20 billion in paper currency in circulation, and each day $70 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. Let  denote the amount of new currency in circulation at time t with  . Formulate and solve a mathematical model in the form of an initial-value problem that represents the "flow" of the new currency into circulation (in billions per day).

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The Answer of A certain small country has $20 billion in paper currency in circulation, and each day $70 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. Let  denote the amount of new currency in circulation at time t with  . Formulate and solve a mathematical model in the form of an initial-value problem that represents the "flow" of the new currency into circulation (in billions per day).

A Certain Small Country Has $20 Billion in Paper Currency