A residential lot’s value appreciates by 3% every year. If it was bought at 500,000 php in the year 2006, how much will be its value in the year 2021?

To solve this problem, we need to use the formula for compound interest, which is:

A = P(1 + r/n)^(nt)

Where: A = the amount of money accumulated after n years, including interest. P = the principal amount (the initial amount of money) r = annual interest rate (in decimal) n = number of times that interest is compounded per year t = time the money is invested for in years

In this case, the principal amount (P) is 500,000 php, the annual interest rate (r) is 3% or 0.03 (in decimal), the number of times that interest is compounded per year (n) is 1 (since the value appreciates annually), and the time the money is invested for in years (t) is 2021 - 2006 = 15 years.

Substituting these values into the formula, we get:

A = 500,000(1 + 0.03/1)^(1*15) A = 500,000(1 + 0.03)^15 A = 500,000 * 1.03^15

Now, calculate the value of A to find the value of the residential lot in the year 2021.