[Math] differential equation, compute the time needed to repay the loan

ordinary differential equations

Susan borrows $A$ dollars at an annual interest rate of $5$ percent. Anticipating steady salary increases, she expects to make payments at a monthly rate of $900(\dfrac{1+t}{200})$ dollars per month, where $t$ is the number of months since the loan was made. Assume that interest is compounded continuously and the payments are also made continuously.
Let $y$ be the amount of money that Susan still owes $t$ months after the loan is made.
Write a differential equation that models $y$.

The following is the equation that I set up, where I divided the annual rate of $5$ percent by 12 to convert it into monthly rate.
$$\dfrac{dy}{dt}= A +(1+\dfrac{0.05}{12})y-900(\dfrac{1+t}{200})$$

But this is not the right answer, can anyone point out where I did wrong?

Best Answer

You should not have the $A$ alone on the right. $y(0)=A$ is the initial condition, but the interest is applied to $y$. The differential equation comes from $\frac {dy}{dt}=$interest-payments, so $\frac {dy}{dt}=\frac {5\%}{12}y-900\left(\frac{1+t}{200}\right)=\frac y{240}-\frac 92(1+t)$.