Problem 3 Life cycle problems (can use Excel program) a) You are going to earn out = $200,000 when working (age 21 and 60), and then you are going to live for the next 20 years with cut = $0. Find the constant level of consumption 0 during years (2180) that can be nanced by your income (Interest rate is 5%). Find the level of savings 5, 2 wt C for periods 75 S 60 and for t > 60 b) Consider the problem in a). Assume that you inherit $1, 000, 000 (one million 33) apart from your regular income, at the age of 20. Find (3' and St? 0) Consider the problem in b). Assume that you also leave your offspring a bequest of $1, 000, 000 (one million $). Find 0 and 3,. d) Optional: Accumulated wealth in period is given by Wt = Wt1(1 +7\") +8, that is it coincides with wealth from the previous period plus interest and savings in t. The agent's initial wealth is W20 2 0. Using Excel sheet, plot the behavior of wealth Wt over your life time for points ac. When the agent's wealth attains it's maximum? What can you say about the wealth level at the end of life: W80