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A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Savings earn interest of 13% and

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A household has a wealth endowment of $5 and can use this to either consume (C) or save (S). Savings earn interest of 13% and consumption yields marginal benefit as follows: 1st $1 has MB $1.46, 2nd $1 has MB $1.27, 3rd $1 has MB 1.16, 4th $1 has MB 1.11, and 5th $1 has MB of $1.08. To maximize the sum of earnings on savings and benefit from consumption, the household should pick OC =1 OC =2 OC =3 O C =4

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