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Total natural gas consumption in the state of New Jersey was 614,908 million cubic feet in 2008 and 653,549 million cubic feet in 2010.

a. Assuming the growth rate continues the same write a recurrence relation for year n.
b. Solve the relation in terms r.
c. Using the given data compute r.
d. What will be the consumption in 2020

1 Answer

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Final answer:

The recurrence relation for the natural gas consumption in New Jersey is C(n) = C(0) * (1 + r)^n. The growth rate can be solved using the formula r = (C(n) / C(0))^(1/n) - 1. The consumption in 2020 will be approximately 842,520 million cubic feet.

Step-by-step explanation:

The recurrence relation for the natural gas consumption in the state of New Jersey is:

C(n) = C(0) * (1 + r)^n

Where C(n) represents the consumption in year n, C(0) represents the initial consumption in 2008, and r represents the growth rate.

To solve the relation in terms of r, we can use the formula:

r = (C(n) / C(0))^(1/n) - 1

Using the given data, we can substitute the values into the formula to compute r:

r = (653,549 / 614,908)^(1/2) - 1

Rounding to four decimal places, r is approximately 0.0311.

To find the consumption in 2020, we can substitute the values into the recurrence relation:

C(12) = 614,908 * (1 + 0.0311)^12

Rounding to the nearest whole number, the consumption in 2020 will be approximately 842,520 million cubic feet.

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