3. (Lehr #4.7) Interest(ed) in the Life Cycle. Example 4.1 assumes that Nia has both a discount rate of zero and faces an interest rate of zero. These assumptions made calculating her constant level of consumption expenditure of $56,000 fairly straightforward. When the discount rate and interest rate are equal, but not necessarily zero, the constant per-period consumption expenditure is c*, given as follows: R-1 = R 1/RT &~ R* Compute (using a computer) Nia's constant annual consumption expenditure in the following cases. Assume that p =r=0.025. Assume that p=r=0.05. Assume thatp=r=0.1. Assume that p=r=0.2. Explain how increasing the interest and discount rates impacts Nia's annual consumption expenditure. Provide intuition for your findings. oo o