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3. You are given the option of when you would like to wash your neighbor's car. You may choose any time in the next four

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3. You are given the option of when you would like to wash your neighbor's car. You may choose any time in the next four days [today (t=0), tomorrow (t=1), ...]. Your consumption utility for washing a car is u(c) = -50c. You have a daily discount rate of 0.25. a. Using the standard economic model of exponential discounting, when do you choose to wash your neighbor's car? b. If you derive utility from anticipation and consumption and your a = 1 when do you wash the car? c. If you derive utility from anticipation and consumption and your a = 3 when do you wash the car? d. When do you wash the car if a = 3, but your daily discount rate is now 0.99

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