Oven looks at his account and notices that if the current monthly interest rate stays constant he is expected to have $45,000 in 6 years (i. e. once 6 years have elapsed) and $89,000 in 9 years. (15 points) a. How much money does he have now (at time 0)?

Present Value= $11,523.99

Explanation:

Giving the following information:

Oven looks at his account and notices that if the current monthly interest rate stays constant he is expected to have $45,000 in 6 years and $89,000 in 9 years.

First, we need to calculate the interest rate compounded monthly using a variation of the future value formula:

FV= PV*(1+i)^n

Isolating i:

i= [(FV/PV)^(1/n)] - 1

FV= 89,000

PV= 45,000

n= 3*12= 36

i= [(89,000/45,000)^(1/36)]-1= 0.0191

i= 0.0191*100= 1.91% compunded monthly

Now, we can calculate the present value:

PV= FV/(1+i)^n

n= 6*12= 72

i= 0.0191

PV= 45,000

PV= 45,000/(1.0191^72)

PV= 11,523.99

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported