A borrower is purchasing a warehouse for $1,000,000 and has been able to secure a $800,000 financing package from three different lenders ($200,000 down payment to come from the borrower). $500,000 will be financed by Lender A at 7%,25 Years. The loan will be secured by senior mortgage (i.e. first mortgage) on the above property $20,000 will be financed by Lender B at 75%, 15 Years. The loan will be secured by the second mortgage on the above property. $100,000 is to be financed by Lender C to be secured by the third mortgage on the above property at an interest rate of 8% for 5 Years. Compute the annual effective cost of this financing package. 07.15% 4.35% 43.00% 15.15% 8.45%