Answered: The price of oil is rising at 10% per…

The price of oil is rising at 10% per year while inflation is just 2.5% per year. If the current price of oil is $45 per barrel, what would be the price of oil ten years from now in real dollars?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The price of oil is rising at 10% per year while inflation is just 2.5% per year.
If the current price of oil is $45 per barrel, what would be the price of oil ten years from now
in real dollars?

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