VALUE OF A BUSINESS John Fernandez figures his bike shop is worth $88,000 if sold today and that it will grow in value at 8% per year compounded annually for the next 6 years. If he sells the business, the funds will be invested at 5% compounded semiannually. (a) Find the future value of the shop. (b) What price should he insist on at this time if he sells the business?

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