A consumer has a financial wealth (non-human wealth) of 100,000.She has an income of 40,000 and expects her salary to increase by 5% each year (in real terms) for the next two years.He will then retire.The real interest rate is 0% and is expected to remain at 0%.Labor income is taxed at 25%.

a) Find the wealth of the consumer from the income.(human wealth)

b) Find the total wealth of the consumer.

c) The consumer expects to live another 7 years after retirement.He would like to have a steady consumption every year starting this year.How much does he have to spend this time to achieve it?

d) If she won a 20,000 bonus this year alone, with all future income remaining the same, how much could she increase her consumption today and in the future?