)(1+i)(l + i)(l+i)(l + i)

e must put aside a sum equal to to cover his bequests to his children, because this sum invested at the beginning of day beginning of day 2, (1 + i)(1 + i) times itself by the beginning of and so on, until it (1 + i) (1 + i)(1+i) (1 + i)(l + i)(1 + i) i)(1 + i)(1 +i) + (1+i (12.2) Suppose now that our citizen plans a stream of consumption Ĉ will have at the beginning of day 1 to set aside to finance a (12.3) He can choose any combination of Ĉ Ĉ Ĉ Ĉ and Ĉ which he likes provided that the expression in (12.3) does not exceed the expression in (12.2).