(Solved) A home buyer pays \$2000 per month on mortgage payments. Suppose the interest rate is 5% per annum and the length of the mortgage is 25 years.

1. A home buyer pays \$2000 per month on mortgage payments. Suppose the interest rate is 5% per annum and the length of the mortgage is 25 years. Let M(t) be the amount of money owed to the bank by the buyer at time t measured in years.
1. i) Â What does M (0) represent?
2. ii) Â What is the value of M(25)?
3. iii) Â Determine (with reasoning) a first order ODE for M(t) assuming the interest is compounded continuously and the payments are also made continuously.

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