We apply the Pontryagin maximum principle for optimal control,

developed in the late 1950s by L. S.

and his co-workers, applies to all calculus of variations problems and optimal control problems

k is state
c is control variables.
V is costate variable

control, co-state, and state variables, since

Here K(t) is the sole state variable; its rate of change is given in the differential equation and its
movements are governed by first order differential equations.

There is one control variable, the rate of consumption

Choice of C(0 determines the rate of capital accumulation and also the
value of the objective function

(Optimal path of this economic model is not easy to calculate so we use most reliable
mathematical software to numerically solve the model)

subject to the capital accumulation equation and parameter restriction

The necessary first order conditions for optimal control are:

Here, c is the control (decision) variable, and k is the state variable υ is co-state variable

Interpreted economically Hamiltonian contains two terms first term evaluate utility of current consumption
and second term evaluate net investment.