Suppose now we have Penny who is single and works at the Cheesecake Factory. Penny has a current income of $50K and expected future income of $50K. She has no current or future wealth. Penny loves to buy shoes and doesn't care too much about the future. Because of this, Penny prefers to consume 3 times as much today relative to next period. Given that Penny faces a real interest rate of 3% (for both borrowing and savings). Please answer the following questions and round everything to 2 decimal places. c) Calculate Penny's optimal consumption bundle showing all work. Make sure you derive C* algebraically and do not just write down the formula. Full credit will not be given if you just use the formula. 0 'X* I own at- |