'android-24' requires JDK 1.8 or later to compile

I use Android Studio and recently got the error:

Error:Execution failed for task ':app:compileDebugJavaWithJavac'. compileSdkVersion 'android-24' requires JDK 1.8 or later to compile.

But I have JDK 1.8 installed already:

:\Users..>java -version
java version "1.8.0_91" Java(TM) SE Runtime
Environment (build 1.8.0_91-b15) Java HotSpot(TM) 64-Bit Server VM
(build 25.91-b15, mixed mode)

How to fix it? Thanks

In Android Studio open:
File > Project Structure > see if JDK location points to your JDK 1.8 directory.

Note: you can use compileSdkVersion 24

I have a same problem for days. I found a solution which worked from me on Windows. (I also set environment variables, but don't know whether it's needed.)

Add these lines to build.gradle file:

android {
     ...
     defaultConfig {
          ...
          jackOptions {
              enabled true
          }
     }
     compileOptions {
         targetCompatibility 1.8
         sourceCompatibility 1.8
     }
}

Source: https://code.google.com/p/android/issues/detail?id=203850