Multiple Choice
Hector's wealth is zero,he expects to work for another 45 years at a constant salary of ?$80 000 and live for another 60 years.Assuming taxes are zero,if Hector receives a $20 000 bonus during his first year of work and he completely smooths consumption over his lifetime,his annual consumption is
A) $60 000.
B) $60 333.
C) $80 444.
D) $107 000.
Correct Answer:
Verified
Correct Answer:
Verified
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