The price of a barrel oil was $48.49 in October 2000. Suppose that in the past 20 years, CPI has grown at a compound rate of 3 % per year. 1 barrel of crude oil price is sold for $ 29.84 today.

a) Determine what is todays price of crude oil per barrel in the year 2000 purchasing power and consider the reference year as 2000?

b) How many years will it take to grow to $48.49 per barrel in todays purchasing power when you consider the price of crude oil per barrel is increased to keep pace with the CPI?

c) ) What was the real interest rate earned from 2000 to 2019 on a crude oil per barrel?

d) Comment on your findings as the price of oil fell below $25 a barrel - the lowest level since 2002.