Question

The cost of a barrel of oil has recently increased by 20% and is now selling for $72.00. How much was the barrel of oil before the increase?

Answer 1

`\$60`

Explanation:

Let

x------> the cost of the barrel of oil before the increase

we know that

`100\%+20\%=120\%`

`120\%=(120)/(100) =1.2`

so

`1.2x=72`

Solve for x

`x=72/1.2=\$60`

Answer 2

1.20(x) = 72.00

1.20(x)/1.20 = 72.00/1.20

x = 60
The barrel of oil costed 60 dollars before the increase
hope this helps