Jacob wants to hang out with friends at the bowling alley. The closest bowling alley he found offers lane rentals for $5.50 per hour from 10 a.m. until 5 p.m. After 5 p.m., prices jump to $7 per hour. If Jacob rents a lane for 3 hours starting at 4 p.m. how much will he have to pay?

Jacob will rent a lane from 4 p.m. to 5 p.m. for 1 hour and then from 5 p.m. to 7 p.m. for 2 hours.

From 4 p.m. until 5 p.m prices are $5.50 per hour so for 1 hour Jacob would pay 1*5.50 = $<<5.50=5.50>>5.50
From 5 p.m. until 7 p.m. prices are $7 per hour so for 2 hours Jacob would pay 2*7 = $<<2*7=14>>14
As we know that starting at 4 p.m. and until 5 p.m. he rents a lane for 1, hour we know that starting at 5 p.m. he rents it for 2 hours giving a total of 1+2 = <<1+2=3>>3 hours.
So for 3 hours of renting a lane, Jacob would have to pay 3*(5.50+7) = $<<3*(5.50+7)=61.50>>61.50. Answer: \boxed{61.50}.

To calculate the cost of Jacob's lane rental, we need to consider the different pricing rates.

From 10 a.m. to 5 p.m., the hourly rate is $5.50, while after 5 p.m., it increases to $7 per hour.

Since Jacob starts renting the lane at 4 p.m., we need to determine how many hours fall into each pricing bracket.

From 4 p.m. to 5 p.m., Jacob will be renting the lane for 1 hour and the rate is $5.50 per hour.

After 5 p.m., Jacob will be renting the lane for an additional 2 hours, and the rate is $7 per hour.

Let's calculate the cost step by step:

Cost from 4 p.m. to 5 p.m. = 1 hour * $5.50 per hour = $5.50

Cost from 5 p.m. onwards = 2 hours * $7 per hour = $14

Total cost = Cost from 4 p.m. to 5 p.m. + Cost from 5 p.m. onwards = $5.50 + $14 = $19.50

Therefore, Jacob will have to pay $19.50 for renting the lane for 3 hours starting at 4 p.m.