Zach lives two periods, earning $31,500 in the first and nothing in the second. The rate of return on savings is 8 percent. Zach faces a sales tax rate of 5 percent and a tax rate on interest income of 20 percent. His after-tax consumption level in the first period is $16,000. The rest of his earnings are used to pay the sales tax and to save for the second period. Determine how much Zach saves and how much he consumes in the second period. Determine how much Zach pays in sales taxes in each period and how much he pays in interest income tax.