the formula is

FV = PV ( 1 + i ) ^ n

so

5000 x ( 1 + (0.031/12) ) ^ 24 = 5319.39

with some minor differences because bank FD interested is calculated daily ie. the interest for February is

5000 x 0.031 / 365 x 28 = 11.89

and not

5000 x 0.031 /12 x 1 = 12.92

so entering a monthly compound FD on Feb and March will make some differences because your starting capital will make a difference in the compounding factor too ...

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Added on May 5, 2008, 10:53 amanother rule of thumb for layman and banks ....

whenever you calculate 2 difference numbers, use the lower one

This post has been edited by mtsen: May 5 2008, 10:53 AM