'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 it 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