If £2000 is placed into a bank account that pays 3% compound interest per year, how much will be in the account after 2years?

3% = 3/100 = 0,03

When it's compount interest it's 1,03 because you gain 3% more from what you already have.

All you need to do
1,03•2000=2060$ for the first year

And then for the second year, you take the actual amount after one year of 3%

1,03•2060=2121,8

After two years, there will be 2121,8$