Jill bought a cd for $1000 that earns 4.2% apr and is compounded monthly. The cd matures in 2 years. How much will this cd be worth at maturity?

The value at maturity will be given by compound formula given by:

FV=P (1+r/100*n) ^n*t

where:

FV=future value=value at maturity

p=principle

r=rate

n=number of terms

t=time

Thus plugging our values in the formula we get:

P=$1000; r=4.2, t=2 years, n=12 terms

FV=1000 (1+4.2/12*100) ^2*12

FV=1000 (1+0.0035) ^24

FV=1087.469396

Thus the value at maturity will be $1087.469396

A = P (1+r/12) ^12t, where A = amount after two years, P = Initial amount = $1000, r = apr = 4.2% = 0.042, t = period = 2 years

Then,

A = 1000 (1+0.042/12) ^12*2 = $1087.47