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

onetime

tax rebate of $5,000 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.

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Part 1

A.

$1,250.00

B.

$2,666.67

C.

$3,750.00

D.

$4,916.67