6. Recognize that there are essentially three periods in your life. During Period One you are a student earning income m1=0 and spending c2 dollars on food. During Period Two you have graduated and are earning m2 =360 and spending C2 dollars on food. Eventually you retire and enter Period Three earning m3=0 and spending c3 dollars on food. Because of perfect capital markets you are allowed to borrow or save between adjacent periods at an interest rate of 20 percent. Your preferences are given by the three good Cobb Douglas utility function u=c1c2c3. a. Calculate the present value of your lifetime earnings and write down the three-period budget constraint. b. Provide a utility maximizing plan that indicates how much money you should spend in each period and how much money you should save or borrow. Hint: There are two tangency conditions MU1/MU2=1+r and MU1/MU3=(1+r)2. c. Suppose that you are allowed to spend money to enhance your human capital by attending university during the first period of your life Your human capital production function suggests that R=42+12H1/2 6. Recognize that there are essentially three periods in your life. During Period One you are a student earning income m1=0 and spending c2 dollars on food. During Period Two you have graduated and are earning m2 =360 and spending C2 dollars on food. Eventually you retire and enter Period Three earning m3=0 and spending c3 dollars on food. Because of perfect capital markets you are allowed to borrow or save between adjacent periods at an interest rate of 20 percent. Your preferences are given by the three good Cobb Douglas utility function u=c1c2c3. a. Calculate the present value of your lifetime earnings and write down the three-period budget constraint. b. Provide a utility maximizing plan that indicates how much money you should spend in each period and how much money you should save or borrow. Hint: There are two tangency conditions MU1/MU2=1+r and MU1/MU3=(1+r)2. c. Suppose that you are allowed to spend money to enhance your human capital by attending university during the first period of your life Your human capital production function suggests that R=42+12H1/2