Answer :
EXPLANATION
Let's see the facts:
Initial Amount = $1,030
Interest rate = 4% = 0.04 (in decimal form)
Compounding rate = Semiannually = 2 times by year
Time= 2 years
As we already know, the Formula to calculate the Principal is as follows:
[tex]P=I(1+\frac{r}{n})^{nt}[/tex]Substituting terms:
[tex]P=1030(1+\frac{0.04}{2})^{2\cdot2}[/tex]Adding numbers:
[tex]P=1,030(1.02)^4[/tex]Simplifying the power:
[tex]P=1,030\cdot1.0824=1,114.87[/tex]The Amount obtained is $1,114.87