Optimal consumption. Let C(t) u(t) be the consumption in period t. Solve the following consumption model

Optimal consumption. Let C(t) ¼ u(t) be the consumption in period t. Solve the following consumption model for T ¼ 2 and T ¼ 4, with K(0) ¼ 5,000, discounting rate 5%, a ¼ 1, A ¼ 1: max fug XT t ¼ 0 bt ln½uðtÞ s:t: Kðt þ 1Þ ¼ AKaðtÞ  uðtÞ  0 for t ¼ 0; 1; 2; /;ðT  1Þ and initial condition Kð0Þ given above: