You have just turned twenty-five years old, and are about to start working with no current assets or debt. Your current salary is w25 =

$50,000 per year, payable at the end of the year. You expect your salary to grow at the rate of 2% p.a. until you retire at age sixty-five.

Suppose you live until you are ninety years old. Suppose also that your patience parameter gc is 1% p.a., while the valuation rate is 3% p.a. Your current minimum, subsistent level of consumption is

$12,000 per year, which is growing at the rate of gb = 1% per year.

Create a table that shows the optimal consumption and savings rates from age twenty-five to ninety, and compare that to the consumption and savings rates according to the fixed percentage savings rule.