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.

Question

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.

Knowee AI · Accepted Answer

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.

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?

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