The North Carolina Education Lottery has a drawing for the PowerBall twice a week and each ticket costs $2. Chris considers buying a ticket for every drawing. At 4 weeks per month, he would be spending about $16 each month. After taking a course in Quantitative Literacy, Chris also considers depositing that $16 into an account with an APR of 5.3% compounded monthly.

How much would Chris have in his savings account after 10 years? (Round to the nearest cent.)

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The chances of winning the PowerBall Jackpot are about one out of 175 million. Which of these seems like the better option for Chris: playing the lottery or depositing into a savings account? Explain your choice in a complete sentence.

Answer rating: 100% (QA)

To calculate the amount Chris would have in his savings account after 10 years we can use the formul... View the full answer