Hector's Wealth Is Zero,he Expects to Work for Another 45

question 47

Multiple Choice

Hector's wealth is zero,he expects to work for another 45 years at a constant salary of ?$80 000 and live for another 60 years.Yearly taxes are $20,000,and Hector received a one-time tax rebate of $5000 during his first year of work.If Hector completely smooths consumption over his lifetime,his annual consumption is

• A) $37 516.67.
• B) $44 916.67.
• C) $45 083.33.
• D) $60 111.11.

---

Definitions:

Lithium

Lithium is a chemical element used as a medication to treat bipolar disorder and manage mood swings by stabilizing brain chemicals.

Psychodynamic Therapy

A form of depth psychology that focuses on revealing and resolving the unconscious conflicts believed to be rooted in childhood experiences.

Family Therapy

A type of psychological counseling that helps family members improve communication and resolve conflicts.

Psychodynamic Therapy

A therapeutic approach that emphasizes understanding the psychological forces underlying human behavior, feelings, and emotions and how they may relate to early experiences.