8.Kecia is currently thirty years old and she plans to retire at age sixty.She is expected to live to age eighty-five.Her labor income is $45,000 per year and she intends to maintain a constant level of real consumption spending over the next fifty-five years.Assuming a real interest rate of 4%per year,no taxes,and no growth in real labor income,what is the value of Kecia's permanent income? a)$31,797 b) $35,196 c) $778,141 d)$994,888 Answer:(b) 9.Oscar is currently thirty-five year old,plans to retire at age sixty-five,and to live to age eighty-five.His labor income is $40,000 per year,and he intends to maintain a constant level of real consumption spending over the next fifty years.Assuming a real interest rate of 4% per year,no taxes,and no growth in real labor income,what is the value of Oscar's human capital? a)$884,344 b) $691,681 c) $39,999 d)$32,198 Answer:(b) 10.Oscar is currently thirty-five year old,plans to retire at age sixty-five,and to live to age eighty-five.His labor income is $40,000 per year,and he intends to maintain a constant level of real consumption spending over the next fifty years.Assuming a real interest rate of 4% per year,no taxes,and no growth in real labor income,what is the value of Oscar's permanent income? a)$884,344 b) $691.,681 c) $39.999 d) $32,198 Answer:(d) 5-35-3 8. Kecia is currently thirty years old and she plans to retire at age sixty. She is expected to live to age eighty-five. Her labor income is $45,000 per year and she intends to maintain a constant level of real consumption spending over the next fifty-five years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Kecia’s permanent income? a) $31,797 b) $35,196 c) $778,141 d) $994,888 Answer: (b) 9. Oscar is currently thirty-five year old, plans to retire at age sixty-five, and to live to age eighty-five. His labor income is $40,000 per year, and he intends to maintain a constant level of real consumption spending over the next fifty years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Oscar’s human capital? a) $884,344 b) $691,681 c) $39,999 d) $32,198 Answer: (b) 10. Oscar is currently thirty-five year old, plans to retire at age sixty-five, and to live to age eighty-five. His labor income is $40,000 per year, and he intends to maintain a constant level of real consumption spending over the next fifty years. Assuming a real interest rate of 4% per year, no taxes, and no growth in real labor income, what is the value of Oscar’s permanent income? a) $884,344 b) $691,681 c) $39,999 d) $32,198 Answer: (d)