Yan is saving to go on a trip to Australia five years from today. She has determined that she will need to have $13,000 saved to take the trip.

1. How much will she need to invest today in order to have $13,000 in five years? Assume she can earn the following interest rates over the next five years:

First year: 3%, Second year 3.5%, Third year: 4%, Fourth year: 5% and Fifth year: 5%

1. Instead of investing the money today, she has decided to wait two years to invest the money. How much will she need to invest, two years from today, in order to have $13,000 five years from today?

First year: 3%, Second year 3.5%, Third year: 4%, Fourth year: 5% and Fifth year: 5%

*write out all formulas