An individual inherits a amount of Co. Rather than depositing that amount in a regular savings account that pays at an annual effective rate of interest of j, the individual wishes to acquire a hotel, which costs exactly Co. This means that at time 0, the balance of this individual after purchasing the hotel is 0. The hotel has to be renovated, which will require a regular payment of co pa p-thly in advance over the first two years, excluding the first period; i.e. excluding the first month for p= 12 or excluding the first quarter for p = 4. The hotel's activity will start exactly at the beginning of the third year, at which time, the individual will also start an advertising campaign that will cost a one-off payment of c at the beginning of the third year. The net income (i.e. including salaries and after taxes) from the hotel stays is assumed to be continuous at a rate p(t) pa, where t is measured in years from time 0 (this means that p(t) = 0 for t