Susan Sarandon, who graduated from the UTSC BBA program, a year ago, lives with her parents, who do not charge her for rent or food

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Susan Sarandon, who graduated from the UTSC BBA program, a year ago, lives with her parents, who do not charge her for rent or food. She works at TEVA pharmaceutical, and her take home pay is $4000 per month after taxes and other deductions. She expects her take home pay to rise at 4% per year for the next several years. 

She has to start paying off her student loan of $40,000. The interest rate on the loan is 4.8% per year compounded monthly and amortization period is 6 years. She would like to purchase a car and the entire $25,000 purchase price of the car will be financed at 6% per year compounded monthly amortized over 4 years. She has $600 per month of expenses which her parents do not pay, like transportation, clothes, entertainment. This cost will rise at 3% per year. 

Two years from now, she will travel to Denmark to attend her sister's wedding. This trip will cost her $10,000 in travel, clothes and gifts. Four years from now, she will go on African safari at a cost of $15,000. 

She will invest her savings in interest earning securities earning before tax rate of return of 0.4% per month. Her marginal tax rate is 40%. 

a. How much will Susan have saved at the end of 4 years? 

b. What does the answer to part (a) tell you that she should be doing with her financial management to be most efficient with her money, while not sacrificing any consumption?