the price of is 150/m3. the price is raisd by 10% each year. wat will the price of oil be at the end of two years?
what is 1.1^2 * 150?
if i understand the question the answer would be 181.5
The question isn't exactly clear how the 10% is done. If it is raised by 10% of the base price each year (as in simple interest), the price at the end of 2 years is $150 + 15+ 15 = $180/m3. If it is raised by 10% each succeeding year from the previous year (as in compounded interest), then %181.50/m3 is correct; i.e., $150 + 15 + 16.50.
To calculate the price of oil at the end of two years, we need to take into account the 10% increase each year.
If the increase is calculated based on the base price of $150 each year, we need to add 10% of $150 to the price each year. After two years, the increase would be 10% of $150 + 10% of $150 = $15 + $15 = $30. Therefore, the price at the end of two years would be $150 + $30 = $180 per m^3.
On the other hand, if the increase is compounded each year, it means that the increase is applied to the new price each year. In this case, we can calculate it by multiplying the base price by (1 + 10%)^2, which represents a 10% increase for two years.
So, 1.1^2 * $150 = 1.21 * $150 = $181.50 per m^3.
Both calculations are valid depending on the interpretation of the question. If you are unsure about the exact method of increase, it would be best to clarify with the source of the question or the context provided.