- #31
shad0w0f3vil
- 70
- 0
ok i understand that, we did that sort of thing in class last week. I will look at that... thanks
Personal Wealth Model using DE's
- Thread starter shad0w0f3vil
- Start date
-
- Tags
- Model
Click For Summary
The discussion revolves around developing a mathematical model for personal wealth using a differential equation. The equation dW/dt=(1-p)(s-n+rW) is established, where W represents wealth over time, and the variables s, n, r, and p denote salary, necessary expenses, interest rate, and luxury spending proportion, respectively. Participants clarify that the goal is to integrate this equation to derive the wealth function W(t), rather than differentiate it. The integration process involves recognizing the equation as first-order and linear, with suggestions to use separation of variables. Ultimately, the discussion concludes with the realization that initial conditions are necessary to solve for constants in the model, leading to a complete understanding of the wealth function.