Answer:
$40,000
Step-by-step explanation:
Calculation to determine What will be her consumption this year
Using this formula
Consumption=Current Income-(Next year consumption-Next year income/1+Market interest rate)
Let plug in the formula
Consumption=$60,000-[($62,000-$40,000)/(1+.10)]
Consumption=$60,000-($62,000-$40,000/1.1)
Consumption=$60,000 - ($22,000/1.1)
Consumption=$60,000-$20,000
Consumption=$40,000
Therefore What will be her consumption this year is $40,000