In an investment account what if $2000 is invested. What is the value after 3 years if compounded monthly by 6%?

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.