what is 1/8 of 5 % of 100%?

Question

I have 3 options to invest in an oil well: First one is to purchase 5% interest in a  well with the royalty paying 1/8, what would the percentage of one barrel of oil?  Second option is to purchase 42% interest with the royalty payingpercentage 1/8 - what is the percentage of one barrel of oil?  The 3rd option would be to purchase 53% interest in the well the  royalty being 20% what is the percentage of one barrel of oil?

Answer 1

1/8 * 0.05 * 1 = 0.00625 

 

 

42% * 1/8 = 0.0525

 

53% * 20% = .106