The price of oil is rising by 10% every year. If the price in 2015 is 120, find its price in 2016.

To find the price of oil in 2016 given that it rises by 10% every year, we can use the formula for exponential growth:

\[ \text{Future Price} = \text{Current Price} \times (1 + \text{Growth Rate}) \]

Here:
- The current price in 2015 is $ \$120 $.
- The growth rate is $ 10\% $ or $ 0.10 $.

So, the price in 2016 will be:

\[ \text{Price in 2016} = 120 \times (1 + 0.10) \]

\[ \text{Price in 2016} = 120 \times 1.10 \]

\[ \text{Price in 2016} = 132 \]

Therefore, the price of oil in 2016 will be $ \$132 $.

Would you like more details or have any questions? Here are 5 related questions you might want to explore:

1. What will be the price of oil in 2017 if the same growth rate continues?
2. How do you calculate the compound growth over multiple years?
3. How does inflation affect the real price of goods over time?
4. Can you explain the difference between simple and compound interest?
5. How would a decrease in the growth rate affect the future price?

**Tip:** When dealing with percentage increases or decreases, converting the percentage to a decimal makes calculations straightforward. For example, 10% becomes 0.10.

Learn how to calculate the future price of oil in 2016 starting from $120 in 2015, with an annual increase of 10%. Understand the exponential growth formula and its application in predicting future prices.

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