To find out how much Mrs. Banks spent on markers, we can multiply the cost of each box of markers by the number of students in her class.
The cost per box is $1.69, and there are 29 students.
Calculation: \[ \text{Total cost} = \text{Cost per box} \times \text{Number of boxes (students)} = 1.69 \times 29 \]
Now, performing the multiplication: \[ 1.69 \times 29 = 49.01 \]
Therefore, Mrs. Banks spent $49.01 on markers.
The answer is A. $49.01.