Knowee
Questions
Features
Study Tools

Due to geopolitical factors, in 2018 the price of crude oil hadIncreased by 10% once in March, and by the same ratio again inSeptember. The price of crude at the end of 2018 was $72.60/barrel.What was the total percent increase in the price of crude oil in2018?

Question

Due to geopolitical factors, in 2018 the price of crude oil hadIncreased by 10% once in March, and by the same ratio again inSeptember. The price of crude at the end of 2018 was $72.60/barrel.What was the total percent increase in the price of crude oil in2018?

🧐 Not the exact question you are looking for?Go ask a question

Solution

To solve this problem, we need to understand that the price increases are compounded, not simply added together.

  1. Let's denote the price of crude oil at the beginning of 2018 as P.

  2. In March, the price increased by 10%, so the price became P * 1.10.

  3. In September, the price increased by 10% again. However, this increase is based on the new price after the March increase, not the original price. So the price became P * 1.10 * 1.10 = P * 1.21.

  4. We know that this final price is 72.60.SowecansetuptheequationP∗1.21=72.60. So we can set up the equation P * 1.21 = 72.60.

  5. Solving this equation for P, we find that P = 72.60/1.21=72.60 / 1.21 = 60.

  6. Therefore, the price of crude oil at the beginning of 2018 was $60/barrel.

  7. To find the total percent increase, we subtract the initial price from the final price, divide by the initial price, and multiply by 100%: ((72.60−72.60 - 60) / $60) * 100% = 21%.

So, the total percent increase in the price of crude oil in 2018 was 21%.

This problem has been solved

Similar Questions

The price of a gallon of unleaded gas was $2.81 yesterday. Today, the price rose to $2.86. Find the percentage increase. Round your answer to the nearest tenth of a percent.

The price of a commodity is increased by 5% in India. The consumption of same was increased from 400 tons to 480 tons. By how much percentage will the expenditure on the article rise in Indian economy?28%26%25%27%

The price of milk was first increased by 10% and then decreased by 20%.What is the net percentage change in final price of milk?

h. What conclusions can you reach concerning the relationship between the price of a barrel of crude oil and the price of a gallon of​ gasoline? A. As the crude oil cost​ increases, the price you pay for gasoline at the pump decreases. B. As the price you pay for gasoline at the pump​ increases, the crude oil costs increase. C. No conclusions can be reached. D. As the crude oil cost​ decreases, the price you pay for gasoline at the pump increases.

The price of a Bluetooth speaker was $120. During the first week of January, its price rose by 20%, and then a week after it rose again by another $24. What is the total percentage increase in price for this speaker? 50% 40% 35% 45% 25%

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.