Suppose that N= 900, y= 10, v^k = 0.9 and X= 1.2. Storage pays a per-period return of 1. Each person has a two-thirds chance of being an Early Type, and a one-third chance of being a Late Type. Show your work.

(a) suppose the Late Types pretend to be Early Types and withdraw early. How many people can be paid before the bank runs out of assets?

(b) Suppose that in the period after you made your deposit at the bank, you turn out to be a Late Type & you learn that all of the other Late Types are about to pretend to be Early Types, so they can withdraw early. Is it in your self-interest to also try to withdraw early