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?

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?

How much does the person discount future consumption?