Answer
$ \$1082.43$
Work Step by Step
Consider the Compound Interest Formula:
$A=P\cdot(1+\dfrac{r}{n})^{n\cdot t} (1)$
Where $P$ is the principal invested at an annual interest rate $r$, $n$ represents the number of times the interest is compounded annually, and $A$ is the amount after $t$ years.
Here we have: $t=2 \ years ; \\ r=4\%=0.04 \\ P=\$ 1000$
and $n=2, t=2$
Plug the above data into formula (1) to obtain:
$A=1000 (1+\dfrac{0.04}{2})^{(2)(2)}= \$1082.43$
