ETF2700 / ETF5970

Mathematics for Business

Week 7

TOPIC 6
Integration
Lagrange from last week.
Do not worry about your difficulties in Mathematics.
I can assure you mine are still greater.
Albert Einstein

Integration
Integration
The Power Rule.
power functions, eg, x2.
the sum or difference of several power functions.
any linear function raised to a power.

Sums and differences of several functions.

The natural exponential function.
Functions of linear functions - by substitution.
First-order differential equations and applications

Bradley ERRATA on Moodle

2

Integration
Integration as the Reverse of Differentiation
d(function) = function
d[ (function)] = function

Notation
The integral of f(x) is the function which,
when differentiated,
yields f(x).
The integral is denoted:
F(x) + c
F(x)+c.
c is a constant.

f(x)

Integration
Power Rule for integration
The integral of f(x): the function which, when differentiated, yields f(x).
The integral is denoted by F(x)+c.
c is a constant.
Example
Integral of f(x) = x is the function which, when differentiated, yields x.
d(x2)/dx = 2x
Almost! But we want x, not 2x.
d(x2/2)/dx = 2(1/2)x = x
Yes, but
d(x2/2 + 1)/dx = 2(1/2)x = x
In fact,
d(x2/2 + c)/dx = 2(1/2)x = x
where c is a constant.
So, x dx = x2/2+ c

Integration
Power Rule for integration

d F ( x) c
f ( x)
dx

f ( x)dx F ( x) c

dy 2 x

x
dx 2

x
xdx c
2

dy
x
dx

x
x dx c
3

y F ( x) c
x
y c
2
x
y c
3
4

x
y c
4
n 1

x
y
c
n 1

dy
x
dx
dy
x
dx

x
x dx c
4
3

n 1

x
c
x dx
n 1
n

Integration
Power Rule for integration
More examples
(1/x4)dx = x 4dx
= [x-4 + 1 /(-4 + 1)] + c
= (x-3/-3) + c
= -(x-3/3) + c

n = -4, n+1 = -3

Differentiate to check.

x dx
= x0.5dx
= [x0.5 + 1 /(0.5 + 1)] + c
= [x1.5/1.5] + c
= (2/3)x1.5 + c

n = 0.5, n+1 = 1.5

1/x3 dx = x-1.5dx
= [x-1.5 + 1 /(-1.5 + 1)] + c
= [x-0.5/-0.5] + c
= -(2/ x) + c

n = -1.5, n+1 = 0.5

Differentiate to check.

Differentiate to check.
6

Integration
Power Rule for integration the exception

(1/x)dx = x-1dx
= [x-1 + 1/(-1 + 1)] + c
= (x0/0) + c!

n = -1 n+1 = 0!

So, the Power Rule applies for any value of n except n = -1.

x-1dx = ln|x| + c, where |x| is the absolute value of x.

Recall that
d[ln(x)]/dx = 1/x.
ln(x) is defined only for x > 0.

Integration
Integration working rules
1. [f(x) + g(x)]dx = f(x)dx + g(x)dx
2. Kf(x)dx = K f(x)dx

where K is a constant.

Integration of a constant K (recall that x0 = 1)

Kdx Kx0dx
n = 0, n+1 = 1
= K x0dx
Working rule 2.
= K(1/1) x1 + c
= Kx + c
Differentiate to check.

NB
f(x)g(x)dx f(x)dx g(x)dx
f(x)g(x)dx f(x) g(x)dx
f(x)g(x)dx f(x) + g(x)dx

Integration
Examples Worked Example 8.2, p431

(x2 + 1/x2)dx
= x2dx + x-2dx

Working rule 2.

= x3/3 + x-1/(-1) + c
= x3/3 1/x + c

Differentiate to check.

(5x - 3x2)dx
= 5xdx - 3x2dx
= 5 xdx - 3 x2dx
= 5(x2/2) 3(x3/3) + c
= 2.5x2 x3 + c

Working rule 2.

Differentiate to check.

Integration
More Examples Worked Example 8.3, p432
{(x + 5x2)/x2}dx
[x 0]
Simplify.
= (1/x + 5)dx
= (x-1 + 5)dx
= x-1dx + 5dx
Working rule 2.
= ln|x| + 5x + c
Differentiate to check.

(Q + 3)QdQ
= (Q + 3)Q0.5dQ
= (Q1.5 + 3Q0.5)dQ
= Q1.5dQ + 3Q0.5dQ
= Q2.5/2.5 + 3Q1.5/1.5 + c
= 0.4Q2.5 + 2Q1.5 + c

Simplify.

Working rule 2.
Differentiate to check.
10

Integration
Integration of the natural exponential function

exdx = ex + c

Recall that d(ex)/dx = ex

Even more examples Worked Example 8.4, p434

(3ex + 5)dx
= 3exdx + 5dx
= 3 exdx + 5dx
= 3ex + 5x + c
Differentiate to check.

{(et + e2t)/et}dt
= (1 + et)dt
= 1dt + etdt

Simplify.

= t + et + c

Differentiate to check.
11

Integration
Integrating a function of a function by algebraic substitution
Function of x: f(x)
Function of (5x 2): f(5x 2)
x10
(5x 2)10
1/x
1/(5x 2)
ex
e(5x 2)
Standard functions; known integrals.

Same type: x linear function of x.

To integrate a function of a function, eg, (5x 2)10dx

substitute u for the function
u = (5x 2),
to yield a standard function in u.
obtain du in terms of dx.
u = 5x 2 du/dx = 5 dx/du = 1/5 dx = (1/5)du.
So, (5x 2)10dx u10(1/5)du (1/5) u10du
= (1/5)[u11/11] + c
= (1/55)u11 + c
= (1/55)(5x 2)11 + c
Differentiate to check.

12

Integration
Integrating a function of a function by algebraic substitution
Example
(5x 2)-1dx
substitute u for the function (5x 2)
to yield a standard function in u.
obtain dx in terms of du.
u = 5x 2 du/dx = 5 dx/du = 1/5 dx = (1/5)du.
So, (5x 2)-1dx u-1(1/5)du (1/5) u-1du
= (1/5)ln|u| + c
= (1/5)ln|5x 2| + c
Differentiate to check.

13

Integration
Integrating a function of a function by algebraic substitution
Example
e(5x 2)dx
substitute u for the function (5x 2)
to yield a standard function in u.
obtain dx in terms of du.
u = 5x 2 du/dx = 5 dx/du = 1/5 dx = (1/5)du.
So, e(5x 2)dx eu (1/5)du (1/5) eu du
= (1/5)eu + c
= (1/5)e(5x 2) + c
Differentiate to check.

14

Integration
Integrating a function of a function by algebraic substitution
Example
(3x + 4)dx
substitute u for the function (3x + 4)
to yield a standard function in u.
obtain dx in terms of du.
u = 3x + 4 du/dx = 3 dx/du = 1/3 dx = (1/3)du.
So, (3x + 4)dx u1/2 (1/3)du (1/3) u1/2du
= (1/3)(2/3)u3/2 + c
= (2/9)(3x + 4)3/2 + c
Differentiate to check.

15

Integration
Integrating a function of a function by algebraic substitution
Example
5(1 - e-0.8Y)dY
= 5dY - 5e-0.8YdY
= 5dY - 5 e-0.8YdY
substitute u for the linear function-0.8Y
to yield a standard function in u.
obtain dY in terms of du.
u = -0.8Y du/dY = -0.8 dY/du = (-1/0.8) dY = (-5/4)du.
So, 5(1 - e-0.8Y)dY
= 5dY - 5 eu(-5/4)du
= 5 1dY + 5(5/4) eudu
= 5Y + 5(5/4)eu + c
= 5[Y + (5/4)eu] + c
= 5[Y + (1.25)e-0.8Y] + c
Differentiate to check.
16

Integration - Area
The area under the curve, between x = a and x = b,
the sum of the areas of the rectangles of width x, heights y1, , yn-1.
ie, y1x + y2x + + yn-1x
y
ib

y i x
i a

This underestimates
the area.

17

Integration - Area
When the rectangle width x is made very small,
the sum of the areas of the rectangles
is a better approximation of the area under the curve.
As x 0, the sum of the areas of the rectangles
= the area under the curve.
y
y = f(x )

Height of 1st
rectangle is
the y value
when x = a.

Height of last
rectangle is
the y value
when x = b.
x
x=b

x=a
widths: x 0

18

Integration - Area
When dealing with infinitely small changes, the notation changes:
like for differentiation, replace x by dx to indicate that x 0.
replace the summation sign
by the integral sign .
x b

x b

x a

x a

So, as x 0, yx becomes the definite integral

ydx

and gives the area under the curve between x=a and x=b.
Notation
f(x)dx = F(x) + c
Area under curve:

y
y = f(x)

x b

f (x)dx

x b

x a

f ( x )dx

F( x ) |xx ab

x a

x=a

x=b

F(b) F(a )
19

Integration - Area
Example - Worked
Example 8.8, p441
x 3
Evaluate (a) (x 2)dx
x 1

x 3

(x 2)dx

x 1

= F(3) - F(1)
= (10.5 + c) (2.5 + c)
= 10.5 2.5
= 8 square units

The cs cancel.
So, ignore the constant when
doing definite integration.

20

Integration - Area
Example - Worked Example 8.8, p441
x 4

Evaluate (b)

2
x
dx

x 0

x 4

2
x
dx = F(4) - F(0)

x 0

= (64/3 + c) (0/3 + c)
= 64/3 = 21.33 square units

21

Integration - Area
Example - Worked Example 8.9, p442
x 2

Evaluate (a)

2 x 3
40
e
dx

x 0

Step 1: Integrate by substitution

square units
22

Integration - Area
Example - Worked Example 8.9, p442
Y 3

0.5Y
(
1

e
)dY
Evaluate (b)
Y 0

Step 1: Integrate by substitution

= [(3 + 2e-0.5(3)) (0 + 2e-0.5(0)]

= [(3 + 0.4462) (0 + 2)]
= 3.4462 2
= 1.4462 square units
23

Integration - Area
Definite integration gives the net area between curve and x-axis.
Area above the x-axis is positive; below the x-axis, negative.
Worked Example 8.10
For f(x) = x2 1, calculate the area between
(a) x = 0 and x = 1, (b) x = 1 and x = 2, (c) x = 0 and x = 2.
Area = -2/3
Area = 4/3
Area = 4/3 2/3 = 2/3
3

y = x2 1

y
2

Area = +4/3

0
0

-1

Area = -2/3

24

WORKED EXAMPLE 8.10

Enclosed by the curve

between x = 0 and x = 2,
net area
= (-2/3) + (4/3) = 2/3
total area = |-2/3| + (4/3) = 6/3
=2
25

Integration - Area
Evaluation of the definite integral when F(x) = ln(x)
Example - Worked Example 8.11, p445
x 1
5
Evaluate (a) dx
x
x 2
x 1

1
5 dx
x
x 2
5 ln | x | |xx 12

= 5ln|-1| 5ln|-2|
= 5ln(1) 5ln(2)
= 50 50.6931
= -3.4657

26

Integration - Area
Evaluation of the definite integral when F(x) = ln(x)
Example - Worked Example 8.11, p445
x 1

2 1
Evaluate (b) x dx
x
x 0 .2
x 1
3
x

ln | x |
3
x 0.2

= 13/3 + ln|1| - {(0.23/3 ln(0.2)}

= 1/3 + 0 (0.008/3 - 1.6094)
= 0.3333 (-1.6068)
= 0.3333 + 1.6068
= 1.9401

27

Applications:
1st Order Differential Equations (DEs)
Solve DEs of the type:
dy/dx = f(x)
Obtain the total function from the rate of change equation.
Solve DEs of the type:
dy/dx = ky
k constant
Solve DEs of the type:

dy/dx = f(x)g(y)

28

1st Order DEs

dy/dx = f(x)

Differential Equation (DE)

An equation which contains derivatives, eg, dy/dx = 10x
1st order DE: highest order derivative is 1st order.
eg, solve for y
dy/dx = 10x
dy/dx = 10x
Integrate both sides with respect to x.
(dy/dx)dx = 10x dx
dy
= 10x dx
1 dy
= 10 x dx
y
= 10(x2/2) + c
y = 5x2 + c

29

1st Order DEs

dy/dx = f(x)

Differential Equation general solution

The general solution to the DE dy/dx = 10x is y = 5x2 + c because
the following expressions (representing a family of related curves)
all provide a solution:
eg, y = 5x2 + 1, y = 5x2 + 6, y = 5x2 - 1, y = 5x2 - 3, y = 5x2 , etc.

30

1st Order DEs

dy/dx = f(x)

Differential Equation particular solution

a particular solution to the DE dy/dx = 10x may be found
if extra information (a point, or a condition) is provided.
eg, condition: the solution must include the point x=1, y=6.
General solution:
y = 5x2 + c
If x=1, y=6
6 = 5(12) + c c = 1
Particular solution:

y = 5x2 + 1

31

1st Order DEs

dy/dx = f(x)

Differential Equation of the form dy/dx = f(x)

Step 1 If necessary, rearrange the equation to this form: dy/dx = f(x).
Step 2 Integrate b.s. w.r.t. x to obtain the general solution.
Step 3 If a condition is provided, calculate the constant c.
Step 4 Write the particular solution.
Example
Solve dy/dx 6x + 2 = 0 given that, when x=3, y=0.
Step 1 dy/dx = 6x 2
has the form: dy/dx = f(x).
Step 2 (dy/dx)dx
= (6x 2)dx
ie, integrating b.s. w.r.t. x.
dy
= 6xdx - 2dx
y
= 3x2 2x + c
Step 3 x=3, y=0 0 = 3(32) 2(3) + c c = -21.
Step 4 Particular solution: y = 3x2 2x - 21
32

1st Order DEs

dy/dx = f(x)

Differential Equation in Economics

Marginal function: 1st derivative of total function MC = d(TC)/dQ
If a marginal function is written as a DE,
solve it to obtain the equation of the total function.
Worked Example 8.16
MC = 10/Q
Obtain the total function, if TC=500 when Q=10.
MC = d(TC)/dQ
Step 1 d(TC)/dQ = 10/Q
has the form: dy/dx = f(x).
Step 2 [d(TC)/dQ] dQ
= (10/Q)dQ
d(TC)
= 10 (1/Q)dQ
TC
= 10ln(Q) + c
Step 3 TC=500, Q=10 500 = 10ln(10) + c
500 - 23.0259 = c
c = 476.9741.
Step 4 Particular solution: TC = 10ln(Q) + 476.9741
33

1st Order DEs

Differential Equation Rates of Change
Many real world problems are described in terms of rates of change,
which can be expressed as differential equations.
eg, the rate at which
the demand for the quantity Q of a good changes over time.
natural resources are being depleted.
a drug is absorbed into the bloodstream.
an epidemic spreads.
Were often interested in the total amount (eg, total demand) that is
accumulated from time t=t0 to t=tn.

34

1st Order DEs

Differential Equation Rates of Change, p458
Total amount (eg, Q) accumulated from time t0 to tn.
First, consider the amount accumulated over a small time interval t:
change in Q rate of change w.r.t time (time interval)
ie,
Q
(Q/t) t
The total accumulated amount of Q from time t0 to tn
sum of accumulated amounts over the small time intervals: t1 to tn.
ie, Total Q Q1 + Q2 + ... + Qn

t t n

As ti 0, total Q t t (rate of change of Q) dt

0

t t n

t t 0

(dQ / dt)dt

35

1st Order DEs

dy/dx = f(x)

Differential Equation Worked Example 8.17, p459

The annual rate of consumption (Q ,000 litres) of heating oil:
Rate = dQ/dt = 1,560e0.012t, where t is in years.
(a)
(i)
Plot the rate
for 0 t 20. dQ
dt

t
(ii)

Solve dQ/dt = 1,560e0.012t for Q.

(dQ/dt) dt = 1,560 e0.012t dt
Q = 130,000e0.012t + c
If Q = 0 at t = 0, then 0 = 130,000e0.0120 + c
c = -130,000 Q = 130,000[e0.012t - 1]

t
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

dQ/dt
1560.0
1578.8
1597.9
1617.2
1636.7
1656.5
1676.5
1696.7
1717.2
1737.9
1758.9
1780.1
1801.6
1823.4
1845.4
1867.7
1890.2
1913.0
1936.1
1959.5
1983.1

36

1st Order DEs

Differential Equation Worked Example 8.17, p459
(b)
Total amount consumed during the first 10 years: t=0 to t=10:

37

1st Order DEs

Differential Equation Worked Example 8.17, p459
(c)
Total amount consumed between years 11 (starts at t=10) & 20:
10 t 20.

38

1st Order DEs

dy/dx = ky

Differential Equations of the form dy/dx = ky

Step 1 If necessary, rearrange the equation to this form: dy/dx = ky.
Step 2 Cant yet integrate b.s. w.r.t . x because the RHS contains y.
So, separate the variables: put the ys with dy & the xs with dx.
Step 3 Integrate b.s. general solution, which has the form: y = Aekx
Step 4 If a condition is provided, calculate the constant c.
Step 5 Write the particular solution.
Worked Example 8.18(a), p463
Solve dy/dx - 0.5y = 0, given that y = 10 when x = 2.
Step 1
dy/dx = 0.5y
has the form: dy/dx = ky
Step 2&3
(1/y)dy
= 0.5dx
Separating the variables.
ln(y)
= 0.5x + c
eln(y)
= e0.5x + c
y
= e0.5x ec
y = Ae0.5x, where A = ec
Step 4
10 = Ae0.52 A = 10/e1
A = 3.6788
39
Step 5
Particular solution: y = 3.6788e0.5x

1st Order DEs

dy/dx = ky

Differential Equations of the form dy/dx = ky

Worked Example 8.18(b), p463
Solve dI/dt = -0.07I, given that I=500 when t=0.
I
Step 1 dI/dt
= -0.07I
Step 2 (1/I)dI = -0.07dt
Step 3 (1/I)dI = - 0.07dt
ln(I)
= -0.07t + c
eln(I)
= e-0.07t + c
Particular solution:
I
= e-0.07t e c
I = 500e-0.07t
I
= Ae-0.07t
where A = e c.

General solution: family of growth curves, which cut the I axis at I = A.

Step 4 500 = Ae-0.070 500 = Ae0 A = 500
Step 5 Particular solution: I = 500e-0.07t

40

1st Order DEs

dy/dx = f(x)g(y)

Differential Equations of the form dy/dx = f(x)g(y)

Step 1 If necessary, rearrange the DE to the form: dy/dx = f(x)g(y).
Step 2 Cant yet integrate b.s. w.r.t. x because the RHS contains y.
Separate the variables
[1/g(y)]dy = f(x)dx
Step 3 Integrate b.s. general solution.
Step 4 If a condition is provided, calculate the constant c.
Step 5 Write the particular solution.
Worked Example 8.19, p465: solve dP/dQ = P(Q + 1)
Step 1 dP/dQ = f(P)g(Q) = P (Q + 1)
Step 2 (1/P)dP
= (Q + 1)dQ
Step 3 (1/P)dP
= (Q + 1)dQ
ln(P)
= 0.5Q2 + Q + c
eln(P)
= 0.52 ++ = 0.52 +
2 +
0.5
0.5Q^2
+ Q , where A = ec: the general solution.

P
= Ae
As the textbook provided no condition for this worked problem,
we cant look for a particular solution.
41

1st Order DEs

dy/dx = ky

Differential Equations Unlimited Growth

Unlimited growth
y
dy/dt = ry
General solution
y = Aert Worked Example 8.18(a)
A: value of y at time t = 0.
t: elapsed time; r > 0.

y = Aert

systems in which the proportional rate of growth, r, is constant.

Bradley p466

See later for a clarification of

Constant proportional rate of growth versus
growth rate from one time period to the next.
y

If r is negative, the system is in decay

and the system obviously has a lower limit: 0.
(Even though it has the form y = Aert.)

50
45
40
35
30
25
20
15

10
5
0
0

50

100

150

200

250

42
300

1st Order DEs

dy/dx = f(x)g(y)
with f(x) = 1.

Differential Equations Limited Growth

Limited growth
dy/dt = r(A y)
with general solution
y = A(1 e-rt)
A: limiting (asymptotic) value.
t: elapsed time; r > 0.
Describes a system with y = 0 at t = 0 and rapid initial growth,
but the growth rate diminishes
and the system (y) levels off to an upper limiting value A.

43

1st Order DEs

dy/dx = f(x)g(y)
with f(x) = 1.

Differential Equations Limited Growth

Worked example 8.20, p467
After an advertising campaign, the rate of increase in printer sales (Q):
dQ/dt = 0.04(700 Q)
Q: number sold. t: time in years. When t = 0, Q = 0.
(a)
Solve to express Q in terms of t.
Step 1 dQ/dt = 0.04(700 Q)
is in the form dy/dt = r(A y).
Step 2 [1/(700 Q)]dQ
= 0.04dt
variables separated.
Step 3 [1/(700 Q)]dQ
= 0.04dt
u = 700 Q, du/dQ = -1
(1/u)[dQ/du]du
= 0.04dt
dQ/du = 1/-1 = -1
- (1/u)du
= 0.04dt
-ln|u|
= 0.04t + c
-ln|700 Q|
= 0.04t + c
ln|700 Q|
= -0.04t - c
eln|700 Q|
= e-0.04t - c
|700 Q|
= e-0.04t e-c

44

1st Order DEs

dy/dx = f(x)g(y)
with f(x) = 1.

Differential Equations Limited Growth

Worked example 8.20, p467
Step 3 (continued)
|700 Q|
= e-0.04t e-c
But, when t = 0, Q = 0.
|700 0|
= e-0.040e-c
e0 = 1
|700|
= e-c
e-c
= 700
So,
|700 Q|
= 700e-0.04t
700 Q
= 700e-0.04t
or
700 Q = -700e-0.04t
Q = 700(1 - e-0.04t)
Q = 700(1 + e-0.04t)
An equation of growth,
An equation of
upward-limited
decline,
at Q = 700.
downward-limited
This is the desired equation for
at Q = 700.
the rate of increase in printer sales.
45

1st Order DEs

Differential Equations Limited Growth
Worked example 8.20, p467
QQ 700
(b)
Sketch Q = 700(1 - e-0.04t) 600
500
and describe how Q
changes with time t (years). 400

dy/dx = f(x)g(y)
with f(x) = 1.

300
200

Rapid initial growth, but

100
Q levels off to an upper
0
0
20
40
60
limiting value of 700.
the limit towards which the volume of sales
increases is 700, at a rate of 0.04 per year.
p467 Bradley

NOT an increase of 0.04 printers per year!

NOT an increase of 4% per year!
a varying rate of increase per year.
eg, 30.75% increase from year 3 to year 4.

80

tt
00
11
22
33
44
55
66
77
88

100

Q
Q
00
27.4
27.4
53.8
53.8
79.2
79.2
103.5
103.5
126.9
126.9
149.4
149.4
171.0
171.0
191.7
191.7

120

tt

140

Proportional
Proportional
increase
increase

0.9608
0.9608
0.4708
0.4708
0.3075
0.3075
0.2260
0.2260
0.1771
0.1771
0.1446
0.1446
46
0.1213
0.1213

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
Unlimited growth: y = Aert
p468 Bradley
Pt = P0ert Same form, but different notation.
P0, Pt: population size at time 0 and at time t.
r: constant proportional (relative) growth rate.
Constant proportional rate of growth
= *rate of change of P at time t
size of P at time t
= dPt/dt
*refers to the gradient at a point.
Pt
= [rP0ert]/Pt because dPt/dt = rP0ert
= rPt/Pt = r because P0ert = Pt
ie, same proportional growth rate, relative to the value of P at time t,
at each point in time.
NB, other growth (decay) models, eg, Pt = P0(1 e-rt)
do not have this property.

47

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
Unlimited growth: Pt = P0ert P0, Pt: population size at time 0 & time t.
r:
constant proportional growth rate.
Constant proportional rate of growth
versus
growth rate from one time period to the next
P
(more common).
Pt = P0ert
Value of P at time t:
Pt = P0ert
Value of P at time t+1:
Pt+1 = P0er(t+1)
P0
Growth rate from period t to t+1:
t
[Pt+1 Pt]/Pt
= [P0er(t+1) - P0ert]/P0ert
= [er(t+1) - ert]/ert
= er(t+1)/ert 1
= er(t+1) - rt 1
= er 1
proportional change from period t to t+1.
48

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
Unlimited growth: Pt = P0ert
r > 0.
Constant proportional rate of growth
versus
growth rate from one time period to the next (more common).
Proportional change from period t to t+1: er 1
Worked Example 8.21 (modified)
Proportional
Pt = 5,312e0.015t
t
P
increase
rt
As we have the form Pt = P0e ,
0 5312.00
constant proportional growth rate = r = 0.015,
1 5392.28
0.0151
2 5473.77
0.0151
irrespective of the value of t.
3
4
5
6
7

5556.50
5640.48
5725.72
5812.25
5900.09

But, proportional change from t to t+1:

= er 1
= e0.015 1
= 1.015113 1
= 0.015113
ie, 1.5113% increase per time period.

0.0151
0.0151
0.0151
0.0151
0.0151

49

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
Unlimited growth: Pt = P0ert
r > 0.
Constant proportional rate of growth versus
growth rate from one time period to the next (more common).
Proportional change from period t to t+1: er 1
Worked Example 8.18(a) (recycled)
y = 3.6788e0.5t
Proportional
xt
Py
increase
As we have the form Pt = P0ert,
3.68
0 5312.00
constant proportional growth rate r = 0.5,
6.07
0.6487
1 5392.28
0.0151
irrespective of the value of x.
2 5473.77
10.00
0.6487
0.0151
3
4
5
6
7

But, proportional change from t to t+1:

= er 1
= e0.5 1
= 1.64872 1
= 0.64872
64.87% increase per time period.

16.49
5556.50
27.18
5640.48
44.82
5725.72
73.89
5812.25
121.83
5900.09

0.6487
0.0151
0.6487
0.0151
0.6487
0.0151
0.6487
0.0151
0.6487
0.0151

50

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
Unlimited growth: Pt = P0ert
The last 2 examples show that constant proportional rate of growth, r,
differs from the growth rate from one time period to the next, er 1.
In practice, the growth rate from one time period to the next, er 1,
is often approximated by r. (eg, last sentence TB p467.)
However, the approximation worsens as r increases.
r
0.01
0.02
0.05
0.10
0.20
0.30
0.40
0.50
0.60

er - 1
0.0101
0.0202
0.0513
0.1052
0.2214
0.3499
0.4918
0.6487
0.8221

51

1st Order DEs

Differential Equations Constant Proportional Rate of Growth (decay)
50
Growth: Pt = P0ert
r<0
P
Worked Example 8.21 (modified) 40
30
Pt = 47e-0.02t
r < 0.
20
As we have the form Pt = P0ert,
constant proportional decay rate 10
r = -0.02,
0
0
25
50
75
100
125
150
175
irrespective of the value of t.
t
But, proportional change from t to t+1:
Proportional
= er 1
= e-0.02 1
t
P
increase
= 0.9802 1
= -0.0198
0
47.00
1
46.07
-0.0198
1.98% decrease per time period.
As r is negative, the system is in decay
and the system obviously has a lower limit: 0.
(Even though it has the form y = Aert.)

2
3
4
5
6

45.16
44.26
43.39
42.53
41.69

-0.0198
-0.0198
-0.0198
-0.0198
-0.0198

52

1st Order DEs

Differential Equations Proportional Rate of Growth Non-constant
Worked Example 8.21 (with errors corrected)
250
Pt = 12/t
P
200
Proportional rate of growth r = [dP/dt]/Pt
150
-2
-1
= [-12t ]/(12/t) = -t
100
which DOES depend on time.
50
So, r is not constant.
0
At t=5, r=-0.2. At t=10, r=-0.1.
0
1
2
3
4
5
6
7
But, proportional change from t to t+1:
value of P at time t is Pt=12/t; at time t+1 is Pt+1 = 12/(t+1).
Proportional change from time t to time t+1:
[Pt+1 Pt]/Pt
= [12/(t+1) 12/t]/(12/t)
= t[1/(t+1) 1/t]
= t/(t+1) 1
= -1/(t+1)
ie, is time dependent.

53