An Individual Has Income of $35,000 in Period 0 and $40,000

Multiple Choice

An individual has income of $35,000 in period 0 and $40,000 in period 1. An investment opportunity that costs $10,000 in period 0 is worth $11,000 in period 1. What is the maximum possible consumption in period 0 if the individual consumes $50,000 in period 1 when the market rate of interest is 8%?

A) $26,000
B) $26,667
C) $44,000
D) $44,720