Question

In May 2007, the price of crude oil was at 61$ per barrel. A year later it was at 126$ per barrel. So ,If the price of the oil continued to climb at this rate , will barrel 1 have cost more than 200$ in December 2008? answer using ax+by=c​

Answer 1

Yes, it will cost $204.30.

Explanation:

Given that in May 2007 the price of a barrel of crude oil was $ 61, and a year later it rose to $ 126, to determine the rate of increase we must perform the following calculation:

61 = 100

126 = X

(126 x 100) / 61 = X

206.55 = X

206.55 - 100 = 106.55

Therefore, a barrel of crude oil rose 106.55% in one year, which implies a rise of 8.87% per month (106.55 / 8.87). Given that December is 7 months apart, maintaining this average increase, the price of a barrel of crude oil in December 2008 arises from the following calculation:

8.87 x 7 = 62.15

126 x 1.6215 = 204.30

Therefore, maintaining this average increase, as of December 2008 a barrel of crude oil will cost $ 204.30.