Step 1 :The problem is asking for the future value of an investment given an initial deposit, an interest rate, and a time period. The formula for future value (FV) in the case of quarterly compounding is: \(FV = P * (1 + r/n)^{nt}\) where: P = principal amount (the initial amount of money), r = annual interest rate (in decimal), n = number of times that interest is compounded per year, t = time the money is invested for in years.
Step 2 :In this case, P = $2,100, r = 5% = 0.05, n = 4 (since interest is compounded quarterly), and t = 29 years.
Step 3 :Substitute the given values into the formula: \(FV = 2100 * (1 + 0.05/4)^{4*29}\)
Step 4 :Solving the equation gives: \(FV = 8872.43841639962\)
Step 5 :Rounding to the nearest cent, the final answer is: \(\boxed{8872.44}\)