Solution: Set up coordinates such that \(A\) at the origin and \(\vec{AB} = \mathbf{x}\) and \(\vec{AD} = \mathbf{y}\) and so \(\vec{AC} = \mathbf{x}+\mathbf{y}\)
- \begin{align*}
AC^2 + BD^2 &= (\mathbf{x}+\mathbf{y})\cdot (\mathbf{x}+\mathbf{y}) + (\mathbf{y}-\mathbf{x})\cdot(\mathbf{y}-\mathbf{x}) \\
&= 2\mathbf{x}\cdot\mathbf{x} + 2\mathbf{y}\cdot\mathbf{y} \\
&= AB^2 + CD^2 +AD^2 + BC^2
\end{align*}
- \begin{align*}
AC^2 -BD^2 &= (\mathbf{x}+\mathbf{y})\cdot (\mathbf{x}+\mathbf{y}) - (\mathbf{y}-\mathbf{x})\cdot(\mathbf{y}-\mathbf{x}) \\
&= 4 \mathbf{x}\cdot \mathbf{y}
\end{align*}
\(\mathbf{x}\cdot\mathbf{y} = |\mathbf{x}||\mathbf{y}|\cos \theta\) which is exactly the lenth of one side mutliplied by the length of the projection to that same side.
\begin{align*}
AB^2 - AD^2 &= \mathbf{x}\cdot\mathbf{x} - \mathbf{y}\cdot \mathbf{y} \\
&= (\mathbf{x}+\mathbf{y})\cdot(\mathbf{x}-\mathbf{y}) \\
&= AC \cdot BD
\end{align*}
So this is the area of the rectangle formed by the length of one diagonal and the projection of the other diagonal onto it.