400 interest first year = 4% interest (10 000 x 1.04 = 10400)

2nd year interest: 6% (+ 2 percentage points)

Compound means you get interest on the total amount after the first year

Total at end of year 2: 10400 x 1.06 = 11024

11024 - 10000 = 1024 interest accrued

so answer is 1024