Bob plans to retire in 20 years. By then he hopes that his savings are equivalent to $1,000,000 today. Assuming annual inflation of 3% and investment returns of 7%:

a. How much does Bob need to have currently in order to achieve his target without injecting fresh capital?

b. Suppose that Bob currently does not have any savings, but plans to deposit a fixed amount $A over the next 20 years, starting next year. What is the minimum value of A that allows Bob to achieve his target.