I was doing some practice questions, but could not figure out how to answer this. Any suggestions on how to go about it?

Q: Provide your calculations for (B), (C), (D) and (E) given that your income this year is $28,000 and your income next year is $32,000 and that the interest rate is 3% and inflation rate is 2%. Assume your preferred point A. At this point you spend your income in the year it is earned. Round to the nearest dollar. Consumption (B) (C) Consumption this year (D) (E) Ff i . B IE &