SOLUTION: Current annual consumption of energy is 78 billion units, and this is expected to rise at a fixed rate of 5.8% each year. The capacity of the industry to supply energy is currently
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Question 1172722: Current annual consumption of energy is 78 billion units, and this is expected to rise at a fixed rate of 5.8% each year. The capacity of the industry to supply energy is currently 104 billion units.
(a) Assuming that the supply remains steady, after how many years will demand exceed supply?
(b) What constant rate of growth of energy production would be needed to satisfy demand for the next 50 years? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 78(1.058)^t=104
1.058^t=1.333
t ln 1.058=ln 1.333
t=ln (1.333)/ln (1.058)
=5.098 years
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78*1.058^50=1307.31 billion units
104*(1+r)^50=1307.31
(1+r)^50=12.570
50 ln(1+r)=ln 12.570;
ln(1+r)=2.5313/50=0.0506
raise to e power
1+r=1.05193
r=5.193%
round at end, not intermediate calculations
