Report 1

Dynamical Systems
Sharisse Gomez, Alyssa Onorario, Abegail Romas
Department of Mathematics, Physics, and Computer Science
University of the Philippines Mindanao
June 2021

This report has three main parts: Part I.1, Part I.2, and Part II. Each part is dedicated to a
distinct problem and a separate process of constructing a model. Overall, this report is focused
on demonstrating the formulation of dynamical systems that model change.

1 Part I.1
1.1 Problem Overview
The problem states that there is an initial amount of PHP 5, 000 in the savings account with a
0.5% interest each month. The goal is to determine the total amount of savings after one year
given that a monthly deposit of PHP 200 is added to the account.

1.2 Model Formulation

In this section, a model for the total amount of savings at some time will be constructed.

1.2.1 Assumptions
• The amount of the monthly deposits is constant.

• No withdrawals or any form of deduction on the savings account are done.

1.2.2 Variables and parameters

• S - the total amount of savings
• t - the time in months

• r - the parameter of the monthly interest rate

• k - the parameter of the amount of monthly deposit

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1.2.3 Building the solution
First, consider the initial amount in the savings account at t = 0.
S(0) = S0 = 5000
Given the monthly interest rate r = 0.005 and the constant monthly deposit k = 200, the total
amount of savings after one month is given by
S1 = S0 + (S0 × 0.005) + 200
For each of the next months, the total amount of savings will be given by
S2 = S1 + (S1 × 0.005) + 200
S3 = S2 + (S2 × 0.005) + 200
S4 = S3 + (S3 × 0.005) + 200
Observe that a pattern is exhibited, and this can be expressed and simplified as follows.
St = St−1 + (St−1 × 0.005) + 200
= St−1 (1 + 0.005) + 200
= St−1 (1.005) + 200
Therefore, the model for the total amount of savings at time t is
St = (St−1 × 1.005) + 200

1.3 Model Solution and Analysis

Given the formulated model for the total amount of savings at time t, an iterative solution can
be done to determine how much the total savings will be after one year. This solution was done
on MS Excel where each iteration accounts for one month. The results are found in Figure 1
below.

Figure 1: The iterative solution for the total amount of savings after 1 year

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 Therefore, the total amount of savings after one year will be PHP 7, 775.50. The plot of the
solution is also shown in Figure 2.

Figure 2: The plot of the solution using MS Excel

1.4 Discussion
The problem was about how much the total amount of savings will be after one year given that
the initial amount at t = 0 is PHP 5, 000, the monthly interest rate is 0.5%, and the monthly
deposit is PHP 200.
The model was formulated using a difference equation. The obtained model for the total
amount of savings at time t was given by St = (St−1 × 1.005) + 200. The first term represents
the growth of the savings and the second term represents the monthly deposit. Given this, an
iterative solution was done to determine the total savings after one year. Since there are 12
months in a year, 12 iterations were performed. The solution was also plotted in Figure 2, which
exhibits that the total savings increases over time.

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2 Part I.2
2.1 Problem Overview
The problem states that there is a credit card loan of PHP 500 with a charge of 1.5% interest
each month. The goal is to determine how many months it will take to reduce the debt to PHP
0 if a payment of PHP 50 is done every month and there are no new charges being made.

2.2 Model Formulation

In this section, a model for the loan balance at some time will be constructed.

2.2.1 Assumptions
• The amount of payment is constant.
• No new charges were made with the credit card.

2.2.2 Variables and parameters

• B - the balance of the credit card loan
• t - the time in months
• r - the parameter of the monthly interest rate
• k - the parameter of the constant amount of monthly payment

2.2.3 Building the solution

First, consider the initial balance of the loan at t = 0.

B(0) = B0 = 500

Given the monthly charge of the interest rate r = 0.015 and the monthly payment k = 50, the
balance of the loan after one month is given by

B1 = B0 + (B0 × 0.015) − 50

Observe that for each of the following months, the balance of the loan is given by
B2 = B1 + (B1 × 0.015) − 50
B3 = B2 + (B2 × 0.015) − 50
B4 = B3 + (B3 × 0.015) − 50

These exhibit a pattern that can be expressed and simplified as

Bt = Bt−1 + (Bt−1 × 0.015) − 50
Bt = Bt−1 (1 + 0.015) − 50
Bt = Bt−1 (1.015) − 50

Therefore, the model for the balance of the loan at time t is

Bt = (Bt−1 × 1.015) − 50

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2.3 Model Solution and Analysis
Given the formulated model for the loan balance at time t, an iterative solution can be done to
determine how many months it will take to reduce the debt to PHP 0. Hence, the iterations will
be done until the balance becomes zero. The results from the solution using MS Excel are shown
in Figure 3.

Figure 3: The iterative solution for the balance of the credit card loan

Observe that after 11 iterations, the amount of the balance becomes less than zero. Therefore,
the debt becomes fully paid after 11 months. The plot of the solution is also found in Figure 4,
which shows that the balance of the credit card loan decreases over time.

Figure 4: The plot of the solution using MS Excel

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2.4 Discussion
The model for describing the remaining balance at time t was formulated by computing the
difference of the remaining balance from t − 1 multiplied by the monthly interest, and the
monthly payment. From this, the number of months it will take until the remaining balance
becomes zero can be determined. In the given problem, the principal amount was PHP 500 with
a 1.5% monthly interest rate and P50 monthly payment. It took 11 months to reduce the debt
to PHP 0.

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3 Part II
3.1 Problem Overview
The problem is about a highly communicable disease spreading on an isolated island that has a
population size of N . Several people living in the island travelled abroad and when they returned,
they were already infected with the disease. For this scenario, the aim is to predict the number
of people X who will be infected after some time t. The model used for this problem is
dX
= kX(N − X)
dt
where k > 0 is constant.

3.2 Assumptions
• The infected people can infect multiple individuals at a time. The disease is
considered as highly communicable, so once an infected individual interacts with another,
the transmission of the disease will be inevitable. Additionally, every contagious individual
can infect more than 1 person at a time until a large part of the population already acquired
the disease. Although the model does not represent this idea, it can be perceived as a factor
for the rapid increase of infected cases within the island.
• Everyone living in the isolated island will be infected with the disease. Since
the island is isolated, the area where people can interact with one another are also lim-
ited. Considering that it is a highly communicable disease, and provided that a portion
of the population originally became infected, it will not take long before everyone living
in the island becomes infected as well. Once everyone is infected, it is only then that the
transmission will come to a halt.

3.3 Variables and parameters

• N - the parameter of the population size of the isolated island
• X - the number of people infected with the disease
• t - the time in days

3.4 Model Solution and Analysis

To determine the number of infected people X, the model for X will be solved to represent it as
a function of t. Given the model
dX
= kX(N − X) (1)
dt
the variables will be separated by having similar terms on the same side of the equation. Thus,
Equation (6) becomes
dX
= k dt (2)
X(N − X)
 
Observe that X(N1−X) = N1 X 1 1
+ N −X . Hence, Equation (7) can be written as

dX dX
+ = kN dt (3)
X (N − X)

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Integrating both sides of Equation (8),
Z Z Z
dX dX
+ = kN dt
X (N − X) (4)
ln X − ln |N − X| = kN t + C

Using the quotient property of logarithms, Equation (9) can be written as

X
ln = kN t + C (5)
N −X
for some constant C.
To find C, the condition X(t0 ) = X0 can be applied. Thus,
X0
C = ln − kN t0
N − X0
This value can be substituted to Equation (10) as follows.
X X0
ln = kN t + ln − kN t0
N −X N − X0
X X0
ln − ln = kN t − kN t0 (6)
N −X N − X0
 
x(N − X0 )
ln = kN (t − t0 )
X0 (N − X)

Exponentiate both sides of Equation (11) to get rid of ln. This gives
X(N − X0 )
= ekN (t−t0 ) (7)
X0 (N − X)
Finally, simplify Equation (12) as follows.

X(N − X0 ) = ekN (t−t0 ) X0 (N − X)

(8)
X(N − X0 ) = X0 N ekN (t−t0 ) − X0 XekN (t−t0 )

Then, isolate X in Equation (13).

X(N − X0 ) + X0 XekN (t−t0 ) = X0 N ekN (t−t0 )

h i
X (N − X0 ) + X0 ekN (t−t0 ) = X0 N ekN (t−t0 )
(9)
X0 N ekN (t−t0 )
X=
(N − X0 ) + X0 ekN (t−t0 )
Equation (14) can be further manipulated to eliminate the value of the constant C.
X0 N
X= 
(N − X0 ) + X0 ekN (t−t0 ) ekN (t−t0 )
X0 N
X= (10)
N e−kN (t−t0 ) − X0 e−kN (t−t0 ) + X0 ekN (t−t0 ) e−kN (t−t0 )
X0 N
X=
(N − X0 )e−kN (t−t0 ) + X0

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Therefore, X as a function of t can be written as
N
X(t) = (11)
e−kN (t−t0 ) +1
where X is the number of people infected with the disease, t is the time in days, N is the
population size of the island, and k is some constant greater than zero.
Next, to find the limit of X as t approaches infinity, Equation (16) will be used.

N
X(t) =
e−kN (t−t0 ) +1
N
= lim
t→∞e−kN (t−t0 ) + 1
N
= lim 1
t→∞ kN (t−t
e 0)
+1
N
=
0+1
=N

Therefore, the limit of X as t approaches infinity is N . As defined previously, N is the population

size of the isolated island. Thus, the number of people infected with the disease will approach
the total population throughout time.