Wanda wants to take some time off in five years to backpack through Europe for three months. She estimates that her expenses of the trip for the three months in today’s dollars would be approximately $20,000.

a. If inflation is running 2% a year, what should her financial savings goal be to support the trip?

b. Wanda could make a one-time deposit today in a savings account that earns 5% interest over the period. How much would she have to deposit today to support the trip?

c. If Wanda is currently starting at $0, how much would she have to put away each month in her savings account that offers an APY of 4%?