IV. Alia follows exponential discounting. Her discount function which represents her preference for money at various points of time is as follows: f(t) = 1/(1.12) for t = 0,1,2...... Alok, on the other hands, follows hyperbolic discounting. His discount function is as follows: f(t) = 1 for t = 0 = 0.88 / (1.10)-1 for t=1,2.... a. What would Alia / Alok prefer: Rs 100 today or Rs. 115 next year (i.e. at the end of the current year)? Why? (5 pts.) (Show calculations in the below empty space.) b. What would Alia / Alok prefer: Rs. 100 next year or Rs. 114 the year after that? Explain their preferences. (5 pts.) (Show calculations in the below empty space.)