This question has two parts. Show all calculations. Assume a two-period certainty model where the market rate of interest is 11%. You have sold your rights to royalties from the sale of your new book to the publisher, Simon and Schuster. The publisher will give you an advance payment of $60,000 today, and in one year's time, the publisher will pay you $110,000, whether the book sells or not. a. If the funds from the publishers are the only income you have and you want to consume $75,000 now, can you consume $90,000 next year? Explain with calculations how you can rearrange your income so you can do all you want. (Show answer correct to two decimal places.) 3 Marks b. If, instead of (a), you decide that in one year's time, you will spend $125,000 to pay off your mortgage, explain with calculations how much you can afford to consume today. (Show answer correct to two decimal places.) 3 Marks