A person currently earns $50,000/yr and is expecting to retire after this year. Their utility is described by the following function:

U = (c1^0.52) * (c2^0.48)

The real interest rate on current savings is anticipated to be 4% next year.

Assuming the person has no accumulated wealth, what is the slope of their budget constraint?

How much does the person discount future consumption?

Assuming that the person maximizes their anticipated life-time utility and has no other accumulated wealth, how much will they consume in the current period?