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Marcella, 25, just graduated from college in Environmental Studies and has been working in outreach for the Sierra Club for the past 12 months. She doesn't make a lot of money at her job, but she learned in her financial management class that she should do what she can to save and invest her money for her future financial goals. Currently, in her budget, she has been able to save $100.00 each month and at the end of her first year of working, she has accumulated $1,200.00. She has decided to invest her $1,200.00 in a Certificate of Deposit that will pay annual interest rate of 4% if she leaves the money on deposit (in the account) for 5 years.
1. Use the information provided above to fill in the Future Value (FV) formula: FV=PV*(i+1.0)n
2. The present value of Marcela's savings is $[ ].
3. The future value of Marcela's savings will be $[ ].
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