A Motel Is Converting Its Rooms into Privately Owned Condominiums

question 79

Multiple Choice

A Motel is converting its rooms into privately owned condominiums. The interest on a $3,800,000,
30-year construction loan is $90,000. What is the rate of interest? Does the rate seem unreasonable?

• A)4.30%; reasonable
• B)0.08%; unreasonable
• C)5.80%; reasonable
• D)1.60%; unreasonable

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