Pete's Real Estate is currently valued at $89,000. Pete feels the value of his business will increase at a rate of 10% per year, compounded semiannually for the next 6 years. At a local fund-raiser, a competitor offered Pete $94,000 for the business. If he sells, Pete plans to invest the money at 8% compounded quarterly. What price should Pete ask? (Use Table 1 and Table 2 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Pete's Real Estate is currently valued at $89,000. Pete feels the value of his business will increase at a rate of 10% per year, compounded semiannually for the next 6 years. At a local fund-raiser, a competitor offered Pete $94,000 for the business. If he sells, Pete plans to invest the money at 8% compounded quarterly. What price should Pete ask? (Use Table 1 and Table 2 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter2: Equations, Inequalities, And Problem Solving
Section2.S: Summary
Problem 8S: What interest rate would you need to get to double an investment of 200 in eight years?
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Transcribed Image Text:Pete's Real Estate is currently valued at $89,000. Pete feels the value of his business will increase at a rate of 10% per year,
compounded semiannually for the next 6 years. At a local fund-raiser, a competitor offered Pete $94,000 for the business. If he sells,
Pete plans to invest the money at 8% compounded quarterly. What price should Pete ask? (Use Table 1 and Table 2 provided.)
Note: Do not round intermediate calculations. Round your answer to the nearest cent.
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