Compound interest formula A = P(1 +r/100)^n A = Amount r = rate = 6 n = number of compounding time. P = Principal = $2000. Since we are compounding monthly, r = 6% p.a = (6/12)% per month. n= 3 years = 3*12 = 36 months. Note that since we are compounding monthly, our time would be in months. A = P(1 +r/100)^n A = 2000 * (1 + (6/12)/100 )^36 A = 2000 * (1 + 6/1200)^36 A = 2000 * (1 + 0.005)^36 Use your calculator A = 2000 * (1 .005)^36 = 2393.36 Amount = $2 393.36 That's it. Cheers.
