The price of crude oil, per barrel, in the year 2006 was estimated at $66.02. There was a 9.5% increase in the year 2007 and a 38.83% increase in the year 2008. Determine the approximate value for a barrel of crude oil in the year 2008.

a.$128.74
b.$91.66
c.$179.27
d.$100.36

Question

The price of crude oil, per barrel, in the year 2006 was estimated at $66.02. There was a 9.5% increase in the year 2007 and a 38.83% increase in the year 2008. Determine the approximate value for a barrel of crude oil in the year 2008. 

a.$128.74
b.$91.66
c.$179.27
d.$100.36

anonymous · Answer

To find the price of crude oil in 2008, we must first find the price in 2007 since that's where it increased from.

What is a 9.5% increase of $66.02?

anonymous · Answer

do you just add the percent to find the increase?

anonymous · Answer

No, we have to find out what is 9.5% of $66.02 and then add that amount to $66.02.  (I know, a little confusing, but you'll get it!! :)).  9.5% can be represented by .095  Go ahead and multiply 66.02 by .095

anonymous · Answer

ok thankyou for replying to me, i'm going to try it

anonymous · Answer

i got 6.2719

anonymous · Answer

then 72.2919

anonymous · Answer

U don't add percentages because [ 9.5% + 38.83%] 38.33% increase is actually not on the origanal price $66.02 but on the increased price in 2007.   Adding percentages would thus give us an incorrect answer.

anonymous · Answer

so what do I do with the 72.2919? @openstudier @mossyfish

anonymous · Answer

so there is another increase in 2008 remember?

anonymous · Answer

Aplly the same logic as to what we did previously

anonymous · Answer

Now increase that by 38.83% and you've got your answer!! :)