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Petes Real Estate is currently valued at $90,000. Pete feels the value of his business will increase at a rate of 12% per year, compounded
Petes Real Estate is currently valued at $90,000. Pete feels the value of his business will increase at a rate of 12% per year, compounded semiannually for the next 4 years. At a local fund-raiser, a competitor offered Pete $95,000 for the business. If he sells, Pete plans to invest the money at 6% compounded quarterly. What price should Pete ask?
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