hi, could you please solve these questions with an explanations? Thanks!

1. Suppose that Bob expects to work for 40 years. In his first 20 years he expects to earn $600,000, while in his second 20 years he expects to earn $900,000. Suppose that the interest rate earned on savings is 50% and the interest rate paid on loans is 50%. a. Show Bob's income when young and old (Mo, Mi) on the diagram below. b. Draw Bob's budget line on the diagram below. Assume that he can save and borrow at i=50%. c. Draw an indifference curve consistent with Bob taking out a 100,000 mortgage loan when he is under 40. Identify his consumption choices as Co and C, on the diagram below. d. Show how a comprehensive flat personal income tax at t=33.3% alters Bob's budget line if mortgage interest is not deductible from taxable income. e. Show how a comprehensive flat personal income tax at t=33.3% alters Bob's budget line if mortgage interest is deductible from taxable income. C1 (x$1,000) 1,800 1,600 1,400 1,200 1,000 800 600 100 200 100 200 300 400 500 600 700 800 900 1,000 Co (x$1,000) CS Scanned with CamScanner