Oil prices have increased a great deal in the last decade. The following table shows the average oil price for each year since 1949.
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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 will 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. Average Oil PricesYear Per Barrel Year Per Barrel Year Per Barrel1949 $ 2.54 1971 $ 3.39 1993 $ 14.25 1950 $ 2.51 1972 $ 3.39 1994 $ 13.16 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 $ 8.85 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 $ 2.89 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 $ 2.88 1988 $ 12.58 2010 $ 71.21 1967 $ 2.92 1989 $ 15.86 2011 $ 87.04 1968 $ 2.94 1990 $ 20.03 2012 $ 93.02 1969 $ 3.09 1991 $ 16.54 2013 $ 97.91 1970 $ 3.18 1992 $ 15.99 2014 $ 93.26 2015 $ 48.79  Using the 1949 oil price and the 1977 oil price, compute the annual growth rate in oil prices during those 28 years.

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