A certain oil well that yields 400 barrels per month will run dry in 2 years.
Supposing that the current price of crude oil is 98 per barrel and that the
price of crude oil will rise at a constant rate of 40 cents per month over the
next two years, how much revenue will be obtained from the well over the
next two year

Question

A certain oil well that yields 400 barrels per month will run dry in 2 years.
Supposing that the current price of crude oil is 98 per barrel and that the
price of crude oil will rise at a constant rate of 40 cents per month over the
next two years, how much revenue will be obtained from the well over the
next two year

anonymous · Answer

$946560

anonymous · Answer

Let x = # of months in the future from 0 to 24.
revenue = 
24
∫ 400(95 + 0.3x) dx =
0

24
∫ (38000 + 120x) dx =
0
.......................24
38000x + 60x^2 | =
.......................0

38000(24) + 60(24^2) - (38000(0) + 60(0^2)) = $946560