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4-42 Spreadsheet Problem Oil prices have increased a great deal in the last decade. The following table shows the average oil price for each year

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4-42 Spreadsheet Problem Oil prices have increased a great deal in the last decade. The following table shows the average oil price for each year since 1949. Many companies use oil products as a resource in their own business operations (like airline firms and manufacturers of plastic products). Managers of these firms will keep a close watch on how rising oil prices wil impact their costs. The interest rate in the PV/FV equations can also be interpreted as a growth rate in sales, costs, profits, and so on (see Example 4-5). a. Using the 1949 oil price and the 1969 oil price, compute the annual growth rate in oil prices during those 20 years. b. Compute the annual growth rate between 1969 and 1989 and between 1989 and 2015. c. Given the price of oil in 2015 and your computed growth rate between 1989 and 2015, compute the future price of oil in 2018 and 2025. 100%5Bdata-uuid-6321112e103047468aba0bb6dcc4f21b%5D!962F4%2F110%5Bdata-uuid-587 Year Per Barrel Year Per Barrel Year Per Barrel 1949 $2.54 1971 $ 3.39 1993 $14.25 1950 $2.51 1972 $ 3.39 1994 $13.19 1951 $2.53 1973 $ 3.89 1995 $14,62 1952 $2.53 1974 $ 6.87 1996 $18.46 1953 $2.68 1975 $ 7.67 1997 $17.23 1954 $2.78 1976 $ 8.19 1998 $10.87 1955 $2.77 1977 $ 8.57 1999 $15.56 1956 $2.79 1978 $ 9.00 2000 $26.72 1957 $3.09 1979 $12.64 2001 $21.84 1958 $3.01 1980 $21.59 2002 $22.51 1959 $2.90 1981 $31.77 2003 $27.54 1960 $2.88 1982 $28.52 2004 $38.93 1961 $2.89 1983 $26.19 2005 $46.47 1962 $2.90 1984 $25.88 2006 $58.30 1963 52.89 1985 $24.09 2007 $64.67 1964 $2.88 1986 $12.51 2008 $91.48 1965 $2.86 1987 $15.40 2009 $53.48 1966 52.88 1988 $12.58 2010 $71.21 1967 $2.92 1989 $15.86 2011 587.04 1968 52.94 1990 $20.03 2012 593.02 1969 $3.09 1991 $16.54 2013 $97.91 1970 5 3.18 1992 $15.99 2014 593.26 2015 548.79 o IL 99

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