How much would $400 be worth after 16 years, if it were invested at 3% interest compounded annually? (Use the formula below and round your answer to the nearest cent.)

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

Your Principal, P, is $400. Your interest rate, expressed as a decimal, is 0.03. Here, n is 1, since there is just 1 compounding period per year.

How much would you have after 16 years under such circumstances?

A = Amount = $400 (1+0.03) ^16. = > $400 (1.03) ^16 = $400 (1.60)

Thus, you would have accumulated $641.88 after 16 years. Sounds like a pretty good deal to me.; )