There is a hotel with 15 rooms. There are 3 rooms with low occupancy rates. Occupancy rate is the percentage of rooms that are rented. Each low occupancy room will cost 20900 to renovate, renovations take 30 days (1 month). The nightly tariff of the original room is 360, once the room is renovated, it will be 510. The National Bank will give a business loan of annual interest rate 6.38% compounded monthly. The debt is will paid within 24 months.

(i) Once the rooms are renovated, an occupancy rate of 18.8% is expected. Calculate the total monthly revenue generated by the tariff increase from the three rooms. Note: 1 month is 30 days.

(ii) Use amortisation formula to calculate the monthly repayment amount to pay off within 24 months. State the total interest paid and if the the planned repayment amount is sufficient to repay the loan.

(iii) Use an amortisation schedule to analyse the outcome of this loan. How much is still outstanding after 24 months?

(iv) Assume the occupancy rate of the rooms is still 18.8%, how much should the tariff be increased from 510 in order to repay the loan within 24 months?