Step 1 :Translate the problem into a mathematical model. The problem states that the bank account balance, represented by A(t), grows at a rate of 7% per year, compounded continuously, and an additional $10,000 is added to the account each year. This can be represented by the differential equation \(\frac{d A}{d t}= 0.07A(t) + 10000\).
Step 2 :Identify the initial condition. The problem states that the initial bank account balance is $40,000. This can be represented as \(A(0)= 40000\).
Step 3 :Combine the differential equation and the initial condition to form the complete mathematical model of the problem. The differential equation is \(\frac{d A}{d t}= 0.07A(t) + 10000\) and the initial condition is \(A(0)= 40000\).