As a financial analyst at Citibank, you want to help your client, John Smith, determine how to allocate his income and consumption over this year and next. Refer to the above graph. Point A is $5000 and Point B is $5800. The solid sloping line represents the opportunities for investment in the capital market. Suppose John Smith has $5,000 now available to support consumption in periods 0 (now) and 1 (next year). John wants to consume exactly the same amount in each period.

Please choose all correct answers. Please note that each incorrect answer will reduce the score by 10%.

PLS HELP ! please advise what answers are correct.

thanks

$Next Year D B $ Now A C John will consume $2685 this period John will consume $3685 this period The market interest rate is 14%. The market interest rate is 17%. John will consume $4685 this period The market interest rate is 16%. The market interest rate is 15%. John will consume $2500 this period