Question: Assume a consumer faces a two-period planning problem under certainty. The utility function is U(c1, c2) =c1c2^0.6; the income stream as the only source of

Assume a consumer faces a two-period planning problem under certainty. The utility function is U(c1, c2) =c1c2^0.6; the income stream as the only source of wealth is y1=2000, y2=1296.Determine the value of the market interest rate that makes this consumer neither a borrower nor a lender when her utility is maximized. Calculate her maximum utility.

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