Final answer:
Jenna's account balance after 30 years is a result of her investment, including her consistent annual deposits and the compound interest earned on those deposits over time.
Step-by-step explanation:
The question, "Jenna saves $2,500 per year in an account that earns 10% interest per year, compounded annually. Jenna will have saved in 30 years. Her account balance is a result of Jenna’s _____.", refers to the overall balance Jenna will achieve from her actions which can be categorized within an option. The correct answer here is investment, as it encompasses both the principal amount Jenna has deposited and the interest earned over the 30 years. In financial terms, the principal amount refers to the initial sum of money before interest, whereas interest earned refers to the money gained from the principal over time due to interest rates.Using the compound interest formula A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial sum of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years. Jenna's situation illustrates compound interest over a 30-year period with an annual deposit. This is a more complex case, often analyzed using savings plan formulas or calculating each deposit's future value individually and summing them up.In conclusion, the compound interest formula allows us to understand the growth of an investment over time. Jenna's account balance after 30 years will be a result of her consistent deposits and the power of compound interest acting on them.