Final answer:
Marilyn is creating a budget, reflecting projected income and expenses over a future period. The budget incorporates the impact of compound interest on savings, and for governments, it shows the fiscal health through the budget deficit or surplus within a fiscal year.
Step-by-step explanation:
Marilyn is creating a budget, which is a statement that projects income and/or expenditures over a specified future period. A budget can take many forms, but at its core, it involves outlining expected receipts, which include anticipated taxes and other revenue sources, and expenditures, which refer to the planned spending. This financial tool is pivotal for planning and managing resources over time.
An important aspect of a budget, especially in a long-term context, is understanding the effect of compound interest. In the scenario provided, if $100,000 is saved today, it would grow to $574,000 in 30 years at a 6% annual interest rate. This exemplifies how savings can significantly increase over time due to compound interest, impacting both personal and governmental financial planning.
When it comes to government budgets, the fiscal year is typically noted as starting on October 1 and ending on September 30 of the following year. The difference between tax revenue and government spending within this time frame determines the annual budget deficit or surplus. This aspect of the budget reflects the government's financial health and policy effectiveness.