Solution - Compound interest (basic)

4799.68

4799.68

Step-by-step explanation

Use $A = P {(1 + r / n)}^{(n t)}$ with $P = 2, 991$ , $r = 3 %$ , $n = 1$ , $t = 16$ .

Compute period rate and exponent: $\frac{r}{n} = 0.03$ , $n t = 16$ , so the growth factor is $1.6047064391$ .

Multiply principal by growth factor: $2, 991$ × $1.6047064391$ = $4799.68$ .

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Compound interest appears in savings, loans, and investments. Understanding it builds strong financial literacy.