Compounded interest takes into account all the accumulated interest of previous periods.
We have that it is the described by the following formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where,
A = the future value of the investment, including interest
P = the initial investment amount
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the time the money is invested
In this question:
A = what we want to find
P = 35,000
r = 0.06 (since it is 6%, we divide 6/100 = 0.006)
n = 1 (since it is per annum)
t = 3 (since we want to find it after 3 years)
Now, we replace in our formula:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ \downarrow \\ A=35,000(1+\frac{0.06}{1})^{1\cdot3} \\ \downarrow \\ A=35,000(1+0.06)^3 \\ A=35,000(1.06)^3 \\ \downarrow \\ (1.06)^3\approx1.191 \\ A\approx35,000\cdot1.191 \\ A\approx41,685 \end{gathered}[/tex]