Final answer:
To solve this problem, we can use the formula for compound interest. Substituting the given values into the formula, we find that Jen will have $3,349.68 after five years.
Step-by-step explanation:
To solve this problem, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount after n years
- P is the initial investment amount
- r is the annual interest rate (expressed as a decimal)
- n is the number of times the interest is compounded per year
- t is the number of years
In this case, Jen invests the same amount she spends on lottery tickets weekly for five years at 6%, compounded weekly. So:
- P = (amount spent on lottery tickets per week) * 52
- r = 0.06 (6% as a decimal)
- n = 52
- t = 5
Substituting the values into the formula:
A = (amount spent on lottery tickets per week) * 52 * (1 + 0.06/52)^(52*5)
Now we can calculate the final amount. From the given options, the correct answer would be A. $3,349.68.