please answer 1-3 and show work and i will give a thumbs up

Chapter 1 Investment, Financing, and Consumption Decisions SNet Year D B I S Now c 1 Problem 1: As a financial analyst at Citibank, you want to help your clients to determine how to allocate their income and consumption over this year and next. Refer to the above graph. Point A is $5000 and Point B is $5700. The solid sloping line represents the opportunities for investment in the capital market. Suppose your clients, Joe Grasshopper and Jean Ant both have $5,000 now available to support consumption in periods 0 (now) and 1 (next year). Jean Ant, being frugal and cautious, wants to spend everything next year, and Joe who can't wait to have fun now wants to spend everything now. Both Joe and jean are offered the opportunity to invest in a startup business to earn 25% with no risk. Please answer the following questions. a. What is the market interest rate [x]? (sample answer: 18.42%) a. b. How much will Joe Grasshopper consume this period and next period? b. c. How much will Jean Ant consume this period and next period? Problem 2. As a financial analyst at Citibank, you want to help your clients to determine how to the income and consumption over this year and next. Refer to the above graph. Point A is $5000 and Point B is $5700. The solid sloping line represents the opportunities for investment in the capital market. Suppose John Smith has $5,000 now available to support the consumption in periods 0 (now) and 1 (next year). John wants to spend the equal amount this year and next. Please answer the following questions. a. What is the market interest rate [x]? (sample answer: 18.42%) b. How much will John Smith consume this period and next? a. Problem 3 As a financial analyst at Citibank, you want to help your clients to determine how to the income and consumption over this year and next. Refer to the above graph. Point A is $5000 and Point B is $5700. The solid sloping line represents the opportunities for investment in the capital market. Suppose John Smith has $5,000 now available to support the consumption in periods 0 (now) and 1 (next year). John was offered the opportunity to invest up to $5000 in a startup business at 25% return. John wants to spend the equal amount this year and next. Please answer the following questions. What is the market interest rate [x]? (sample answer: 18.42%) b. How much will John Smith consume this period and next? a