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

question 48

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.Shortly after the tax rebate is announced,the government unexpectedly announces that the one-time tax rebate will actually become a permanent tax reduction.If Hector completely smooths consumption over his lifetime,his annual consumption will increase by ________ due to the tax rebate becoming permanent in the following year.

• A) $2733.33
• B) $3666.67
• C) $3750.00
• D) $5000.00

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Definitions:

DeviceNet

An open, low-cost network protocol used in industrial automation to interconnect control devices for data exchange.

ControlNet

A robust industrial network protocol used for real-time, high-speed data communication among control devices.

Allen-Bradley Data Highway

A proprietary communication network used to connect Allen-Bradley PLCs and other devices for industrial automation.

Communications Network

A system of interconnected devices and technologies designed to facilitate communication and data exchange across multiple locations.