Answer:
$3316 should be invested.
Step-by-step explanation:
Since, the amount formula in compound interest is,
[tex]A=P(1+r)^t[/tex]
Where, P is the principal amount,
r is the rate per period,
t is the time in years,
Here,
A = $ 60,000,
r = 10.5% = 0.105
t = 29 years,
By substituting value,
[tex]60000=P(1+0.105)^{29}[/tex]
[tex]P=\frac{60000}{1.105^{29}}=\$3316.23415377\approx \$3316[/tex]
Hence, $ 3316 should be invested.
