Solution:
The formula for compound interest, including principal sum, is:
[tex]A = p(1+\frac{r}{n})^{nt}[/tex]
Where,
A = the future value of the investment including interest
P = the principal investment amount
r = the annual interest rate in decimal
n = the number of times that interest is compounded per unit t
t = the time the money is invested
From given,
p = 10000
t = 2 years
[tex]r = 2 \% = \frac{2}{100} = 0.02[/tex]
n = 2 ( since interest is compounded semiannually)
Substituting the values in formula,
[tex]A = 10000(1+\frac{0.02}{2})^{2 \times 5}\\\\A = 10000(1+0.01)^{10}\\\\A = 10000(1.01)^{10}\\\\A = 10000 \times 1.104622\\\\A = 11046.2212 \approx 11046[/tex]
Thus the amount at the end of the term is $ 11046
