A Motel is converting its rooms into privately owned condominiums. The interest on a $4,900,000, 30-year construction loan is $100,000. What is the rate of interest? Does the rate seem unreasonable?
A) 5.70%; reasonable
B) 1.40%; unreasonable
C) 4.20%; reasonable
D) 0.07%; unreasonable

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The Answer of A Motel is converting its rooms into privately owned condominiums. The interest on a $4,900,000, 30-year construction loan is $100,000. What is the rate of interest? Does the rate seem unreasonable?
A) 5.70%; reasonable
B) 1.40%; unreasonable
C) 4.20%; reasonable
D) 0.07%; unreasonable

A Motel Is Converting Its Rooms into Privately Owned Condominiums