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What price should Pete ask

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Question - Pete's Real Estate is currently valued at $72,000. Pete feels the value of his business will increase at a rate of 6% per year, compounded semiannually for the next 4 years. At a local fund-raiser, a competitor offered Pete $77,000 for the business. If he sells, Pete plans to invest the money at 4% compounded quarterly. What price should Pete ask?

Reference no: EM132632981

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