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,he will save ________ of the tax rebate during his first year of work.
A) $1250.00
B) $2666.67
C) $3750.00
D) $4916.67

Question

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The Answer of 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,he will save ________ of the tax rebate during his first year of work.
A) $1250.00
B) $2666.67
C) $3750.00
D) $4916.67

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