Income growth

An individual begins her working life at date twith no non-human wealth. Her labour income grows at rate 9 per year, assumed to be 3% (or 0.03) per annum: thus her income in year t +j is 32\"} = yt + g. Her income is received at the end of each year so that the present value of income received in year t +j is \"33% where r is the constant real rate of interest assumed to be 5% (0.05) per annum. Assume an innite planning horizon and assume that she consumes her permanent income. Calculate the ratio of consumption to income at the start of her working life. Briefly discuss why her consumption will initially be substantially greater than her income