What an odd occurrence … the response to two sequential but unrelated threads can be almost the same.
This works for both :
Difference vs. Differential
and
Stupid Math Question
(although the math question’s already been answered, I thought I’d post this anyway)
Whatever has happened with usage of the word ‘differential’ outside of the technical fields[sup]*[/sup], the distinction between difference and differential is still quite meaningful in at least one mathematical sense. Difference equations are for discrete steps (differences), differential equations are for the continuous case (as you probably know, the differential works using infinitesimal differences).
As an example, consider compound interest : If you compound it at regular intervals – say r% a year, you wait until a year is up, then multiply by the rate and add to it to get the new amount.
This gives you the difference equation
V[sub]n+1[/sub] = V[sub]n[/sub] * ( 1 + r/100)
The solution to this difference equation for any V[sub]n[/sub] is :
V[sub]n[/sub] = V[sub]0[/sub] * (1 + r/100)[sup]n[/sup]
where V[sub]0[/sub] is the starting principal. This is the same formula that diamud posted.
But if instead of computing the interest after the period of time, you computed it continuously, you’d get the differential equation
v’ = r*v with v(0) = P, the starting principal,
and v’ denotes the time derivative of v. The solution to this equation is :
v = P**e*[sup]rt[/sup] (which was posted by Cabbage)
It all depends on how you compute the interest, although as you make the interval smaller in the discrete case, you of course come closer to the continuous case. Most credit card companies that I know of compound daily (check the fine print).
For more information, there’s a free (GNU copyleft) textbook titled “Difference Equations to Differential Equations” available in postscript and PDF formats at http://math.furman.edu/~dcs/book/
panama jack
[sup]*[/sup] Anyone who uses “American sports” as a singular conscious entity is pushing the language just a little bit, BobT. I don’t find these changes in language objectionable.