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