Answer for 6) b ; 7) a.

How to calculate?

David has the following utility function: U = 0.51nc1 +1nCz + Inc} He has initial wealth $100,000, earns no additional income, and face a zero interest. Use this information to answer C16 and C17. 6. How much does he consume in each of the three periods ? a) 23,571.43, 28,571.43, 28,521.43 b) 42,857.14, 28,571.43, 28,571.43 c) 42,357.14, 42,852.14, 23,571.43 d]. Others. Please specify: , . 7. How much wealth does David have left after period 1 ? a) 57,142.85 b} 42,857.14 c) 28,571.43 d} Others. Please specify