Consider the Consumption and Savings model with random future income. The utility function of the individual is: u(C 0 , C 1 ) = (C 0 ) + (C 1 ) 1/2 , where C 0 is present consumption expenditure and...

Consider the Consumption and Savings model with random future income. The utility function of the individual is: u(C₀, C₁) = (C₀) + (C₁)^1/2, where C₀ is present consumption expenditure and C₁ is future consumption.  Let the present income be $5, the interest rate in the financial market r = 5%, and the probability distribution of future income Y₁ = (1, 2; 1/2 , 1/2).

Calculate the expected utility of saving $0 (consume $5 in the present) (use two decimals)