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VCE 12 General 2023

5.02 Growth and decay

Lesson

Model linear growth and decay

An arithmetic sequence can be used to model linear growth or decay occurs when a quantity increases or decreases by the same amount at regular time intervals.

For any arithmetic sequence with starting value a and constant increase of d, we can express it in either of the following two forms:

  • Recursive form is a way to express any term in relation to the previous term: V_{n+1}=V_n +d, where V_0=a.

  • Explicit form is a way to express any term in relation to the term number: V_n= a + (n-1)d, where V_1=a.

If d is positive the sequence with model linear growth and if d is negative it will model linear decay.

Note: If the initial term is set to V_0 rather than V_1, the general rule becomes V_n=a+nd.

Examples

Example 1

The value of a new car decreases every year by \$500. It was originally worth \$45000. Write a recurrence relation to show the depreciation of the value of the car.

Worked Solution
Create a strategy

Determine the initial term V_0 and constant increase of d.

Apply the idea

We are given that the initial amount is 45000, which is V_0. Since the value of a new car decreases every year by \$500, then d=500. We subtract 500 from V_n to get to the next term, V_{n+1}. So,

V_{n+1}=V_n -500, \, V_0=45000

Idea summary

For any arithmetic sequence with starting value a and constant increase of d, we can express it in either of the following two forms:

  • Recursive form is a way to express any term in relation to the previous term: V_{n+1}=V_n +d, where V_0=a.

  • Explicit form is a way to express any term in relation to the term number: V_n= a + (n-1)d, where V_1=a.

If d is positive the sequence with model linear growth and if d is negative it will model linear decay.

Model geometric growth and decay

A sequence in which each term increases or decreases from the last by a constant factor is called a geometric sequence. We refer to the constant factor the terms are changing by as the common ratio, which will result from dividing any two successive terms. This models a quantity which increases or decreases by the same percentage rate at regular intervals such as compound interest and reducing balance depreciation.

For any geometric sequence with starting value a and common ratio R, we can express it in either of the following two forms:

  • Recursive form is a way to express any term in relation to the previous term: V_{n+1}=RV_n, where V_0=a.

  • Explicit form is a way to express any term in relation to the term number: V_n=aR^{n-1}, where V_1=a.

If R \gt 1 the sequence with model geometric growth and if 0 \geq R \leq it will model geometric decay.

Note: If the initial term is set to V_0 rather than V_1, the general rule becomes V_n=aR^n.

Examples

Example 2

A bouncy ball is dropped onto the ground from a height of 13 metres.

On each bounce, the ball reaches a maximum height of 50\% of its previous maximum height.

a

Write a recursive rule for a_{n+1}, the height of the ball on the (n+1)th th bounce, in terms of a_n and an initial condition a_0. Write both parts on the same line separated by a comma.

Worked Solution
Create a strategy

Use the height from which the ball is dropped onto the ground to state the initial condition a_0. Multiply the height of the ball by the given percentage.

Apply the idea

The ball is dropped onto the ground from a height of 13 metres. So,a_0=13

The geometric sequence decreases by 0.5 times each time. This is because on each bounce, 50\% is mutliplied by the the height of the ball.

So the recurrence relation is given by:a_{n+1}=0.5a_n, \, a_0=13

b

Write a formula for a_n, for the height reached on the nth bounce in terms of n.

Worked Solution
Create a strategy

Use explicit form for a geometric sequence a_n=a_1 R^{n-1}, where a_1 is the first term.

Apply the idea

From part (a), R=0.5 so

\displaystyle a_1\displaystyle =\displaystyle 0.5 \times 13Multiply 13 by 0.5
\displaystyle =\displaystyle 6.5Evaluate

So the formula for a_n, for the height reached on the nth bounce is given by:a_n=6.5 \times 0.5^{n-1}

c

How high does the bouncy ball reach after the 4th bounce? Round your answer to two decimal places.

Worked Solution
Create a strategy

Substitute n=4 into the explicit formula.

Apply the idea
\displaystyle a_n\displaystyle =\displaystyle 6.5 \times 0.5^{n-1}Write the formula
\displaystyle a_4\displaystyle =\displaystyle 6.5 \times 0.5^{4-1}Substitute n=4
\displaystyle =\displaystyle 6.5 \times 0.5^{3}Evaluate the exponent
\displaystyle =\displaystyle 0.81 \text{ metres}Evaluate
Idea summary

For any geometric sequence with starting value a and common ratio R, we can express it in either of the following two forms:

  • Recursive form is a way to express any term in relation to the previous term: V_{n+1}=RV_n, where V_0=a.

  • Explicit form is a way to express any term in relation to the term number: V_n=aR^{n-1}, where V_1=a.

If R \gt 1 the sequence with model geometric growth and if 0 \geq R \leq it will model geometric decay.

Combine linear and geometric growth and decay

Arithmetic and geometric sequences are special forms of a first order linear recurrence relation. The first order in the name refers to the relationship only looking back one term to define the next and linear as we will not raise the previous term to a power other than one. This means we can write each term as a linear combination of the previous term, so the general form is: V_{n+1}=RV_n +d, where R and d are constants. Such a recurrence relation can be used more generally to model situations that include both linear and geometric growth or decay.

V_0 = \text{initial value}, \, V_{n+1} = RV_n +d where R is the geometric componenent and d is the linear component.

Examples

Example 3

Consider the recurrence relation U_{n+1}=0.5U_n +2 and U_0=20.

a

Find U_1.

Worked Solution
Create a strategy

Substitute U_0=20 into the expression.

Apply the idea
\displaystyle U_1\displaystyle =\displaystyle 0.5U_0+2Write the equation
\displaystyle =\displaystyle 0.5\times 20+2Substitute the value of U_0
\displaystyle =\displaystyle 10+2Evaluate the multiplication
\displaystyle =\displaystyle 12Evaluate the addition
b

Find U_2.

Worked Solution
Create a strategy

Substitute the value of U_1 from part (a) into the expression.

Apply the idea
\displaystyle U_2\displaystyle =\displaystyle 0.5\times U_1+2Write the equation
\displaystyle =\displaystyle 0.5\times 12+2Substitute the value of U_1
\displaystyle =\displaystyle 6+2Evaluate the multiplication
\displaystyle =\displaystyle 8Evaluate the addition
c

Find U_3.

Worked Solution
Create a strategy

Substitute the value of U_2 from part (b) into the expression.

Apply the idea
\displaystyle U_3\displaystyle =\displaystyle 0.5\times U_2+2Write the equation
\displaystyle =\displaystyle 0.5\times 8+2Substitute the value of U_2
\displaystyle =\displaystyle 4+2Evaluate the multiplication
\displaystyle =\displaystyle 6Evaluate the addition
d

Complete the table of values.

n0123
U_n
Worked Solution
Create a strategy

Write the corresponding terms for n=0,1,2,3 from parts (a) to (c) to complete the table.

Apply the idea
n0123
U_n201286
e

Graph the relation.

Worked Solution
Create a strategy

Consider the table of values from part (e) as ordered pairs and plot these points.

Apply the idea
1
2
3
n
2
4
6
8
10
12
14
16
18
20
U
Idea summary
\displaystyle V_0 = \text{initial value}, \, V_{n+1} = RV_n +d
\bm{R}
is the geometric component
\bm{d}
is the linear component

Outcomes

U3.AoS2.1

the use of first-order linear recurrence relations to model growth and decay problems in financial contexts

U3.AoS2.5

model and analyse growth and decay in financial contexts using a first-order linear recurrence relation

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