Answer:
The formula for the amount A in a compound interest account at annual interest rate r, where the principal P is compounded n times per year, for n years is
A = P(1+r/n)^nt
* * * * *
The above formula is for t years with interest compounded n times a year, not n years, as stated.
So start with 2000
Annual interest rate 4% (that is generous!)
Interest paid every 6 months - twice a year
How much is it worth after 3 years?
P = 2000
r = 0.04 (remember, per cent means "as a part of 100")
n = 2
t = 3
A = 2000(1+.04/2)2*3 = 2000*1.026 = 2000*1.126162 = 2252.32