Pete feels value of his business will increase

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Pete’s Real Estate is currently valued at $85,000. Pete feels the value of his business will increase at a rate of 12% per year, compounded semiannually for the next 5 years.

At a local fundraiser, a competitor offered Pete $90,000 for the business. If he sells, Pete plans to invest the money at 4% compounded quarterly. What price should Pete ask? (use Table 1 and Table 2 provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Price $

Reference no: EM131917957

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