Vanessa's Utility Function Is , Where C₁ Is Her

Vanessa's utility function is , where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. In period 2, her income is 4 times as large as her income in period 1. At what interest rate will she choose to consume the same amount in period 2 as in period 1? (Choose the closest answer.)

A) 0.10
B) 0
C) 0.30
D) 0.80
E) 0.20