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? (Use Table 1 and Table 2 provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Price
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? (Use Table 1 and Table 2 provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
5.5%
9.0%
9.5%
1
0.9754 0.9515
0.9057
0.9705
0.8880
0.9420
0.9145
0.9327 0.9010
0.9657
0.9609
0.9561
0.5847
0.3505
0.9513
0.8963
0.9466
0.9419 0.8874
0.5897 0.5568
0.8489
0.8364
0.9372 0.8787 0.8240
0.7254
0.6810
0.6394
0.8118
0.7579
0.7077
0.6611
0.6178
0.9326 0.8700
0.8613
0.5643 0.5303
0.5400 0.5051
0.5167
0.4810
0.9279
0.7999
0.6905
0.6419
0.5553
0.5969
0.8528
0.6736
0.7880
0.9233
0.5767
0.5339 0,4945
0.9187
0.8444
0.7764
0.6572
0.5572
0.4732
0.5134
0.4581
0.4363
0.4155
0.3957
0.8360
0.9141
0.7649
0.6412
0.5874
0.5384
0.4936
0.2120
0.4528
0.9096 0.8277
0.6255
0.7536
0.5703
0.5202
0.1945
0.4746
0.4333
0.9051
0.6730
0.6103
0.5537
0.5026
0.4564
0.4146 0.3769
0.1784
0.1628
0.5954
0.5375
0.1803
0.1637
0.1487
7.5%
10.0%
8.0 % 8.5%
6.5% 7.0%
4.5%
6.0%
5.0%
2.5% 3.0% 3.5% 4.0%
2.0%
1.5%
1.0%
Period 0.5%
0.9390 0.9346 0.9302 0.9259 0.9217 0.9174 0.9132 0.9091
0.9950 0.9901 0.9852 0.9804 0.9756 0.9709 0.9662 0.9615 0.9569 0.9524 0.9479 0.9434
0.8734 0.8653
0.8817
0.8573 0.8495 0.8417 0.8340 0.8264
0.9518
0.9157 0.9070 0.8985 0.8900
0.9426 0.9335 0.9246
0.9901 0.9803 0.9707 0.9612
0.8278 0.8163 0.8050 0.7938 0.7829 0.7722 0.7617 0.7513
0.8638 0.8516 0.8396
0.9019
0.9286 0.9151
0.8890 0.8763
0.9706
0.9851
0.9563 0.9423
0.7216 0.7084 0.6956 0.6830
0.8548 0.8386
0.7488 0.7350
0.8714
0.8227 0.8072
0.7773 0.7629
0.7921
0.9060 0.8885
0.9422
0.9802 0.9610
0.9238
0.7130
0.7299
0.6650 0.6499 0.6352 0.6209
0.6966 0.6806
0.7473
0.7651
0.7835
0.8420
0.8025
0.8839
0.8219
0.9283
0.8626
0.6480 0.6302 0.6129
0.6853 0.6663
0.7050
0.5963 0.5801 0.5645
0.8135 0.7903 0.7679 0.7462 0.7252
0.8623 0.8375
0.6028
0.5298
0.5649 0.5470
0.6227
0.5132
0.5835
0.6435
0.7348 0.7107
0.6651
0.6874
0.8131 0.7860 0.7599
0.8413
0.8706
0.6516
0.6768
0.6274 0.6042
0.5403
0.5820 0.5607
0.5207 0.5019
0.4665
0.4838
0.7032
0.8207 0.7894
0.9235 0.8877 0.8535
0.7594 0.7307
0.4418
0.6176
0.4799
0.5216 0.5002
0.5919 0.5674
0.4604
0.4241
0.6446
0.5439
0.7337 0.7026 0.6729
0.7664
0.8746 0.8368
0.9143
0.8007
0.5584
0.5083 0.4852
0.4423
0.5327
0.4632
0.4224
0.3855
0.6756 0.6439
0.5854
0.4035
0.7089
0.6139
0.7812 0.7441
0.8203
0.9053 0.8617
0.5549
0.4513 0.4289
0.5268
0.4076
0.5002
0.3875
0.4751
0.3685
0.7224 0.6849 0.6496 0.6162
0.8043 0.7621
0.5260
0.4440
0.4970
0.4199 0.3971 0.3757
0.4697
0.3555
0.6618
0.3365
0.7014
0.6246
0.7885 0.7436
0.4688
0.4150 0.3906
0.4986
0.3677 0.3463
0.4410
0.3262 0.3073
0.6006
0.7730
0.4726 0.4423 0.4141
0.3633
0.3191
0.3878
0.3405
0.2992 0.2807
0.5775
0.4479
0.2941
0.4173 0.3888
0.3380
0.2745
0.3624
0.3152
0.2563
0.2519 0.2341
0.3936
0.3387
0.3651
0.3144 0.2919 0.2711
0.4246
0.3428 0.3166 0.2925 0.2703
0.4024 0.3714
0.2499
0.2138
0.2311
0.3815
0.3219
0.2502
0.2959 0.2720
0.1952
0.3503
0.2303
0.2531 0.2317
0.3305 0.3022
0.3616
0.1783
0.2765
0.2122
0.3427 0.3118 0.2838 0.2584 0.2354 0.2145 0.1956
0.8195 0.7425
0.3249 0.2942
0.2415
0.2665
0.2190
0.7315
0.1987
0.6598
0.9006 0.8114
0.6468 0.5809
0.1839
0.3797
0.1662
0.7207
0.3418 0.3079
0.2037
0.1502
0.8961 0.8034
0.2775 0.2502 0.2257
0.5219
0.3256
0.2109
0.1703
0.8916 0.7954 0.7100
0.1531
0.5067
0.2919
0.1378
0.6342 0.5667
0.2618 0.2349
0.1895
0.3634
0.1577 0.1412 0.1264
0.6995 0.6217 0.5529
0.8872
0.4919
0.7876
0.2470
0.1971
0.2206
0.1763
0.3477
0.2767
0.3101
0.4776
0.8828 0.7798
0.1640
0.6892 0.6095
0.3327
0.1301
0.5394
0.2953
0.1160
0.2622 0.2330
0.1460
0.2071 0.1842
0.5976 0.5262 0.4637
0.4088
0.8784 0.7720 0.6790
0.3607
0.1064
0.3184 0.2812 0.2486
0.1722
0.2198 0.1945
0.1525
0.1199
0.1352
0.8740 0.7644
0.5859 0.5134 0.4502
0.6690
0.3950 0.3468 0.3047 0.2678 0.2356 0.2074 0.1826 0.1609 0.1419 0.1252 0.1105 0.0976 0.0863 0.0763
0.5744 0.5009 0.4371 0.3817 0.3335
0.8697
0.2551
0.2916
0.2233
0.7568 0.6591
0.1956 0.1715
0.1320
0.1504
0.1159 0.1019 0.0895
0.8653
29
0.6494
0.7493
0.4887
0.5631
0.4243
0.3207
0.3687
0.2790
0.2117 0.1846
0.2429
0.1610 0.1406 0.1228 0.1073 0.0939 0.0822
30 0.8610 0.7419 0.6398 0.5521 0.4767 0.4120 0.3563 0.3083 0.2670 0.2314 0.2006 0.1741 0.1512 0.1314 0.1142 0.0994 0.0865 0.0754 0.0657 0.0573
31 0.8567 0.7346 0.6303 0.5412 0.4651 0.4000 0.3442 0.2965 0.2555 0.2204 0.1902 0.1643 0.1420 0.1228 0.1063 0.0920 0.0797 0.0691 0.0600
0.0521
32 0.8525 0.7273 0.6210 0.5306 0.4538 0.3883 0.3326 0.2851 0.2445 0.2099 0.1803 0.1550 0.1333 0.1147 0.0988 0.0852 0.0735 0.0634 0.0548 0.0474
33 0.8482 0.7201 0.6118 0.5202 0.4427 0.3770 0.3213 0.2741 0.2340 0.1999 0.1709 0.1462 0.1252 0.1072 0.0919 0.0789 0.0677 0.0582 0.0500 0.0431
34 0.8440 0.7130 0.6028 0.5100 0.4319 0.3660 0.3105 0.2636 0.2239 0.1904 0.1620 0.1379 0.1175 0.1002 0.0855 0.0730 0.0624 0.0534 0.0457 0.0391
0.8398 0.7059 0.5939 0.5000 0.4214 0.3554 0.3000 0.2534 0.2143 0.1813 0.1535 0.1301 0.1103 0.0937 0.0796 0.0676 0.0575 0.0490 0.0417 0.0356
0.0530 0.0449 0.0381 0.0323
0.8315 0.6920 0.5764 0.4806 0.4011 0.3350 0.2800 0.2343 0.1962 0.1644 0.1379 0.1158 0.0973 0.0818 0.0688 0.0580 0.0489 0.0412 0.0348 0.0294
0.8274 0.6852 0.5679 0.4712 0.3913 0.3252 0.2706 0.2253 0.1878 0.1566 0.1307 0.1092 0.0914 0.0765 0.0640 0.0537 0.0450 0.0378 0.0318 0.0267
0.8232 0.6784 0.5595 0.4619 0.3817 0.3158 0.2614 0.2166 0.1797 0.1491 0.1239 0.1031 0.0858 0.0715 0.0596 0.0497 0.0415 0.0347 0.0290 0.0243
0.8191 0.6717 0.5513 0.4529 0.3724 0.3066 0.2526 0.2083 0.1719 0.1420 0.1175 0.0972 0.0805 0.0668 0.0554 0.0460 0.0383 0.0318 0.0265 0.0221
0.8151 0.6650 0.5431 0.4440 0.3633 0.2976 0.2440 0.2003 0.1645 0.1353 0.1113 0.0917 0.0756 0.0624 0.0516 0.0426 0.0353 0.0292 0.0242 0.0201
0.8110 0.6584 0.5351 0.4353 0.3545 0.2890 0.2358 0.1926 0.1574 0.1288 0.1055 0.0865 0.0710 0.0583 0.0480 0.0395 0.0325 0.0268 0.0221 0.0183
0.8070 0.6519 0.5272 0.4268 0.3458 0.2805 0.2278 0.1852 0.1507 0.1227 0.1000 0.0816 0.0667 0.0545 0.0446 0.0365 0.0300 0.0246 0.0202 0.0166
44 0.8030 0.6454 0.5194 0.4184 0.3374 0.2724 0.2201 0.1780 0.1442 0.1169 0.0948 0.0770 0.0626 0.0509 0.0415 0.0338 0.0276 0.0226 0.0184 0.0151
45 0.7990 0.6391 0.5117 0.4102 0.3292 0.2644 0.2127 0.1712 0.1380 0.1113 0.0899 0.0727 0.0588 0.0476 0.0386 0.0313 0.0254 0.0207 0.0168 0.0137
46 0.7950 0.6327 0.5042 0.4022 0.3211 0.2567 0.2055 0.1646 0.1320 0.1060 0.0852
0.0685 0.0552 0.0445 0.0359 0.0290 0.0235 0.0190 0.0154 0.0125
47 0.7910 0.6265 0.4967 0.3943 0.3133 0.2493 0.1985 0.1583 0.1263 0.1009 0.0807 0.0647 0.0518 0.0416 0.0334 0.0269 0.0216 0.0174 0.0140 0.0113
0.7871 0.6203 0.4894 0.3865 0.3057 0.2420 0.1918 0.1522 0.1209 0.0961 0.0765 0.0610 0.0487
0.0389 0.0311 0.0249 0.0199 0.0160 0.0128 0.0103
0.7832 0.6141 0.4821 0.3790 0.2982 0.2350 0.1853 0.1463 0.1157 0.0916 0.0725 0.0575 0.0457 0.0363 0.0289 0.0230 0.0184 0.0147 0.0117 0.0094
0.7793 0.6080
0.2909 0.2281 0.1791 0.1407 0.1107 0.0872 0.0688 0.0543 0.0429 0.0339 0.0269 0.0213 0.0169 0.0134 0.0107 0.0085
0.4388 0.3968 0.3589
0.4856
0.4220
0.4692
0.4533 0.4057
0.3901
0.4380
0.1133
0.4231
0.3751
0.1034
0.0923
0.0945 0.0839
27
28
0.0693
0.0788
0.0719
0.0630
0.8356 0.6989 0.5851 0.4902
0.4111 0.3450 0.2898 0.2437 0.2050 0.1727 0.1455 0.1227 0.1036 0.0875 0.0740 0.0626
35
36
37
38
39
43
48
49
0.4750 0.3715
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
18
19
20
21
23
24
25
26
41
0.7430
0.7284
0.7142
0.7002
0.6864
0.6232
0.6050
0.3186
0.2897
0.2633
0.2394
02176
0.1978
0.1799
0.1635
0.1486
0.1351
0.1358 0.1228
0.1240
0.1117
0.1015
Present value interest factor of $1 per period at i% for n periods, PVIF(i,n).
Period 0.5% 1.0 % 1.5%
2.0%
4.0%
1
0.9950 0.9901
10.0%
0.9091
0.8264
0.9901
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17 0.9187 0.8444 0.7764
18
19
0.5874 0.5384 0.4936 0.4528 0.4155 0.3815 0.3503 0.3219 0.2959 0.2720 0.2502
20
21
23 0.8916 0.7954 0.7100 0.6342 0.5667 0.5067 0.4533 0.4057 0.3634 0.3256 0.2919 0.2618 0.2349
24 0.8872 0.7876 0.6995 0.6217 0.5529 0.4919 0.4380 0.3901 0.3477 0.3101
25 0.8828 0.7798 0.6892 0.6095 0.5394 0.4776 0.4231 0.3751 0.3327 0.2953
26 0.8784 0.7720 0.6790 0.5976 0.5262 0.4637 0.4088 0.3607 0.3184 0.2812
0.8740 0.7644 0.6690 0.5859 0.5134 0.4502 0.3950 0.3468 0.3047 0.2678
3.0% 3.5%
2.5%
4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0%
9.0%
8.5%
9.5%
0.9756 0.9709
0.9804
0.9569 0.9524
0.9662 0.9615
0.9479
0.9390
0.9434
0.9346 0.9302 0.9259 0.9217 0.9174 0.9132
0.9707 0.9612 0.9518 0.9426 0.9335 0.9246
0.9070
0.9157
0.8900
0.9803
0.8985
0.8734
0.8817
0.8653 0.8573 0.8495 0.8417 0.8340
0.9563
0.8763
0.9423 0.9286 0.9151 0.9019 0.8890
0.8396
0.8638 0.8516
0.8278
0.7829
0.8163
0.9851
0.8050
0.9706
0.7938
0.7722 0.7617 0.7513
0.9802
0.9422
0.9610
0.9238 0.9060 0.8885 0.8714 0.8548 0.8386 0.8227 0.8072 0.7921 0.7773 0.7629 0.7488 0.7350
0.6956
0.7216
0.6830
0.7084
0.9057 0.8839 0.8626
0.9515
0.8420 0.8219
0.9283
0.8025 0.7835 0.7651 0.7473
0.6966
0.7299 0.7130
0.6650
0.6806
0.6499
0.9754
0.6209
0.6352
0.9705 0.9420 0.9145 0.8880 0.8623 0.8375 0.8135 0.7903 0.7679 0.7462 0.7252 0.7050 0.6853 0.6663
0.6129
0.6480 0.6302
0.5963 0.5801 0.5645
0.8706 0.8413
0.9327 0.9010
0.7860
0.7348
0.7599
0.9657
0.8131
0.7107 0.6874
0.6435
0.6651
0.6227
0.5649
0.5298
0.6028
0.5132
0.5835
0.5470
0.8877 0.8535 0.8207
0.9609 0.9235
0.7894 0.7594 0.7307 0.7032 0.6768 0.6516
0.6042
0.6274
0.5820
0.5403
0.5607
0.5019
0.5207
0.4838 0.4665
0.8007
0.9561 0.9143
0.7664 0.7337
0.8746
0.7026
0.8368
0.6729 0.6446
0.5439
0.6176 0.5919
0.5002
0.5674
0.5216
0.4418 0.4241
0.4799 0.4604
0.9053 0.8617 0.8203 0.7812 0.7441
0.6756
0.9513
0.7089
0.6139
0.6439
0.5854 0.5584
0.5083
0.5327
0.4632
0.4852
0.4423 0.4224
0.3855
0.4035
0.9466 0.8963 0.8489 0.8043 0.7621 0.7224
0.6849 0.6496 0.6162 0.5847 0.5549 0.5268 0.5002 0.4751 0.4513 0.4289 0.4076 0.3875 0.3685 0.3505
0.9419 0.8874
0.7436
0.8364 0.7885
0.7014 0.6618 0.6246 0.5897 0.5568 0.5260
0.4440
0.4970 0.4697
0.4199 0.3971 0.3757 0.3555 0.3365 0.3186
0.9372 0.8787 0.8240 0.7730 0.7254 0.6810 0.6394 0.6006 0.5643 0.5303 0.4986 0.4688 0.4410 0.4150 0.3906 0.3677 0.3463 0.3262 0.3073 0.2897
0.9326 0.8700 0.8118 0.7579 0.7077 0.6611 0.6178 0.5775 0.5400 0.5051 0.4726 0.4423 0.4141 0.3878 0.3633 0.3405 0.3191 0.2992 0.2807 0.2633
0.9279 0.8613 0.7999 0.7430 0.6905 0.6419 0.5969 0.5553 0.5167 0.4810 0.4479 0.4173 0.3888 0.3624 0.3380 0.3152 0.2941 0.2745 0.2563 0.2394
0.9233 0.8528 0.7880 0.7284 0.6736 0.6232 0.5767 0.5339 0.4945 0.4581 0.4246 0.3936 0.3651 0.3387 0.3144 0.2919 0.2711 0.2519 0.2341 0.2176
0.7142 0.6572 0.6050 0.5572 0.5134 0.4732 0.4363 0.4024 0.3714 0.3428 0.3166 0.2925 0.2703 0.2499 0.2311 0.2138 0.1978
0.9141 0.8360 0.7649 0.7002 0.6412
0.2303 0.2120 0.1952 0.1799
0.9096 0.8277 0.7536 0.6864 0.6255 0.5703 0.5202 0.4746 0.4333 0.3957 0.3616 0.3305 0.3022 0.2765 0.2531 0.2317 0.2122 0.1945 0.1783 0.1635
0.9051 0.8195 0.7425 0.6730 0.6103 0.5537 0.5026 0.4564 0,4146 0.3769 0.3427 0.3118 0.2838 0.2584 0.2354 0.2145 0.1956 0.1784 0.1628 0.1486
0.9006 0.8114 0.7315 0.6598 0.5954 0.5375 0.4856 0.4388 0.3968 0.3589 0.3249 0.2942 0.2665 0.2415 0.2190 0.1987 0.1803 0.1637 0.1487 0.1351
22 0.8961 0.8034 0.7207 0.6468 0.5809 0.5219 0.4692 0.4220 0.3797 0.3418 0.3079 0.2775 0.2502 0.2257 0.2037 0.1839 0.1662 0.1502 0.1358 0.1228
0.2109 0.1895 0.1703 0.1531 0.1378 0.1240 0.1117
0.2767 0.2470 0.2206 0.1971 0.1763 0.1577 0.1412 0.1264 0.1133 0.1015
0.2622 0.2330 0.2071 0.1842 0.1640 0.1460 0.1301 0.1160 0.1034 0.0923
0.2486 0.2198 0.1945 0.1722 0.1525 0.1352 0.1199 0.1064 0.0945 0.0839
0.2356 0.2074 0.1826 0.1609 0.1419 0.1252 0.1105 0.0976 0.0863 0.0763
28 0.8697 0.7568 0.6591 0.5744 0.5009 0.4371 0.3817 0.3335 0.2916 0.2551 0.2233 0.1956 0.1715 0.1504 0.1320 0.1159 0.1019 0.0895 0.0788 0.0693
29 0.8653 0.7493 0.6494 0.5631 0.4887 0.4243 0.3687 0.3207 0.2790 0.2429 0.2117 0.1846 0.1610 0.1406 0.1228 0.1073 0.0939 0.0822 0.0719 0.0630
0.8610 0.7419 0.6398 0.5521 0.4767 0.4120 0.3563 0.3083 0.2670 0.2314 0.2006 0.1741 0.1512 0.1314 0.1142 0.0994 0.0865 0.0754 0.0657 0.0573
0.8567 0.7346 0.6303 0.5412 0.4651 0.4000 0.3442 0.2965 0.2555 0.2204 0.1902 0.1643 0.1420 0.1228 0.1063 0.0920 0.0797 0.0691 0.0600 0.0521
32
0.8525 0.7273 0.6210 0.5306 0.4538 0.3883 0.3326 0.2851 0.2445 0.2099 0.1803 0.1550 0.1333 0.1147 0.0988 0.0852 0.0735 0.0634 0.0548 0.0474
33 0.8482 0.7201 0.6118 0.5202 0.4427 0.3770 0.3213 0.2741 0.2340 0.1999 0.1709 0.1462 0.1252 0.1072 0.0919 0.0789 0.0677 0.0582 0.0500 0.0431
34 0.8440 0.7130 0.6028 0.5100
0.4319 0.3660 0.3105 0.2636 0.2239 0.1904 0.1620 0.1379 0.1175 0.1002 0.0855 0.0730 0.0624 0.0534 0.0457 0.0391
0.8398 0.7059 0.5939 0.5000 0.4214 0.3554 0.3000 0.2534 0.2143 0.1813 0.1535 0.1301 0.1103 0.0937 0.0796 0.0676 0.0575 0.0490 0.0417 0.0356
36 0.8356 0.6989 0.5851 0.4902 0.4111 0.3450 0.2898 0.2437 0.2050 0.1727 0.1455 0.1227 0.1036 0.0875 0.0740 0.0626 0.0530 0.0449 0.0381 0.0323
37 0.8315 0.6920 0.5764 0.4806 0.4011 0.3350 0.2800 0.2343 0.1962 0.1644 0.1379 0.1158 0.0973 0.0818 0.0688 0.0580 0.0489 0.0412 0.0348 0.0294
38 0.8274 0.6852 0.5679 0.4712 0.3913 0.3252 0.2706 0.2253
0.0914
0.0765 0.0640 0.0537 0.0450 0.0378 0.0318 0.0267
39 0.8232 0.6784 0.5595 0.4619 0.3817 0.3158 0.2614 0.2166 0.1797 0.1491 0.1239 0.1031 0.0858 0.0715 0.0596 0.0497 0.0415 0.0347 0.0290 0.0243
0.8191 0.6717 0.5513 0.4529 0.3724 0.3066 02526 0.2083 0.1719 0.1420 0.1175 0.0972 0.0805
0.0668 0.0554 0.0460 0.0383 0.0318 0.0265 0.0221
0.8151 0.6650 0.5431 0.4440 0.3633 0.2976 0.2440 0.2003 0.1645 0.1353 0.1113 0.0917 0.0756 0.0624 0.0516 0.0426 0.0353 0.0292 0.0242 0.0201
0.8110 0.6584 0.5351 0.4353 0.3545 0.2890 0.2358 0.1926 0.1574 0.1288 0.1055
0.0865 0.0710 0.0583 0.0480 0.0395 0.0325 0.0268 0.0221 0.0183
0.8070 0.6519 0.5272 0.4268 0.3458 0.2805 0.2278 0.1852 0.1507 0.1227 0.1000 0.0816 0.0667 0.0545 0.0446 0.0365 0.0300 0.0246 0.0202 0.0166
0.8030 0.6454 0.5194 0.4184 0.3374
0.2724 0.2201 0.1780 0.1442 0.1169 0.0948 0.0770 0.0626 0.0509 0.0415 0.0338 0.0276 0.0226 0.0184 0.0151
0.5117 0.4102 0.3292 0.2644 0.2127 0.1712 0.1380 0.1113 0.0899 0.0727 0.0588 0.0476 0.0386 0.0313 0.0254 0.0207 0.0168 0.0137
0.1060 0.0852 0.0685 0.0552 0.0445 0.0359 0.0290 0.0235 0.0190 0.0154 0.0125
47 0.7910 0.6265 0.4967 0.3943 0.3133 0.2493 0.1985 0.1583 0.1263 0.1009 0.0807 0.0647 0.0518 0.0416 0.0334 0.0269 0.0216 0.0174 0.0140 0.0113
48 0.7871 0.6203 0.4894 0.3865 0.3057
02420
0.1918 0.1522 0.1209 0.0961 0.0765 0.0610 0.0487 0.0389 0.0311 0.0249 0.0199 0.0160 0.0128 0.0103
49 0.7832 0.6141 0.4821 0.3790 0.2982 0.2350 0.1853 0.1463 0.1157 0.0916 0.0725 0.0575 0.0457 0.0363 0.0289 0.0230 0.0184 0.0147 0.0117 0.0094
50
0.7793 0.6080 0.4750 0.3715 0.2909 0.2281 0.1791 0.1407 0.1107 0.0872 0.0688 0.0543 0.0429 0.0339 0.0269 0.0213 0.0169 0.0134 0.0107 0.0085
27
31
0.1878 0.1566 0.1307 0.1092
40
41
42
43
44
45
0.7990 0.6391
46
0.7950 0.6327 0.5042 0.4022 0.3211 0.2567 0.2055 0.1646 0.1320
Transcribed Image Text: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? (Use Table 1 and Table 2 provided.) (Do not round intermediate calculations. Round your answer to the
nearest cent.)
Price
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