To find the future value of the investment after 11 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the future value of the investment
P is the principal amount ($1600 in this case)
r is the annual interest rate (3% or 0.03 as a decimal)
n is the number of times the interest is compounded per year (annually in this case)
t is the number of years (11 in this case)
Plugging in the values, we have:
A = 1600(1 + 0.03/1)^(1*11)
A = 1600(1.03)^11
A ≈ 1600(1.432364654)
A ≈ $2299.78
Therefore, the investment will be worth approximately $2299.78 after 11 years.