(FV) = P(1 + r/n)^(nt)
Where:P is the principal amount (1200 PHP)r is the annual interest rate (2% or 0.02)n is the number of times the interest is compounded per year (assuming it's compounded annually, so n = 1)t is the number of years (3 years)Now, plug these values into the formula:
FV = 1200(1 + 0.02/1)^(1*3)
FV = 1200(1 + 0.02)^3
FV = 1200(1.02)^3
FV ≈ 1274.48 PHP