2. If the interest rate is constant over the 30-year term, what are the month-end payments for
the mortgage? What will be the total interest paid on the hotel over the term?
When the renovations to the hotel are finished (including the name 'Rest for the Wicked' in
stylish lettering on the front), Nelson is pleased to find that they were completed under-budget,
costing him only $2,370,000.
3. Nelson invests the surplus in another high-yield investment that earns 15.3% compounded
quarterly. How much is this investment worth in 5 years' time?
After 5 years of owning the hotel, Nelson's investment matures and he decides to use this
balance to capitalize on an opportunity to open a small bed and breakfast near a golf course,
the Chip Inn.