Question

Difficulty: HardLinear and Exponential Growth

A laboratory uses two types of equipment, Instrument A and Instrument B, which both have an initial value of VV dollars when purchased at the same time (t=0t = 0 years). The value of Instrument A decreases linearly at a constant rate over time. At t=3t = 3 years, the value of Instrument A is $12,000\$12,000, and at t=6t = 6 years, its value is $8,000\$8,000. The value of Instrument B decreases exponentially at a constant annual rate. At t=2t = 2 years, the value of Instrument B is $4,000\$4,000. What is the value, in dollars, of Instrument B at t=4t = 4 years?

Answer: 1000 dollars

Answer

1000
The correct answer is 1000. By defining the value of Instrument A linearly, we obtain the system V3d=12000V - 3d = 12000 and V6d=8000V - 6d = 8000. Solving this system yields an initial value of V=16000V = 16000. Instrument B decreases exponentially with the model VB(t)=16000btV_B(t) = 16000 \cdot b^t. Given VB(2)=4000V_B(2) = 4000, we have 16000b2=400016000 \cdot b^2 = 4000, which gives b2=0.25b^2 = 0.25. The value at t=4t = 4 is then calculated as VB(4)=VB(2)b2=40000.25=1000V_B(4) = V_B(2) \cdot b^2 = 4000 \cdot 0.25 = 1000.

Step-by-Step Solution

1
Set up a system of linear equations for Instrument A's value.
V3d=12000V - 3d = 12000 and V6d=8000V - 6d = 8000
Instrument A decreases linearly, meaning its value is modeled by VA(t)=VdtV_A(t) = V - dt.
2
Solve for the constant annual rate of decrease, dd, and the initial purchase value, VV.
d=40003d = \frac{4000}{3} and V=16000V = 16000
Subtracting the two linear equations eliminates VV, allowing us to solve for dd and subsequently substitute it back to find VV.
3
Apply the initial value V=16000V = 16000 to Instrument B's exponential decay model at t=2t = 2.
16000b2=400016000 \cdot b^2 = 4000
Instrument B decreases exponentially starting from the same initial value VV, so its model is VB(t)=VbtV_B(t) = V \cdot b^t.
4
Solve for the 2-year decay factor, b2b^2.
b2=0.25b^2 = 0.25
Dividing both sides of the equation by 1600016000 isolates the term representing the growth or decay factor over a two-year interval.
5
Calculate the value of Instrument B at t=4t = 4 years.
10001000
Multiply the value at t=2t = 2 by the 2-year decay factor b2b^2, which yields 40000.25=10004000 \cdot 0.25 = 1000.

Key Concept

Distinguishing between linear decay (constant absolute rate of change) and exponential decay (constant percentage rate of change) to set up and solve coupled system models.
Rate this question