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Given the following information, calculate the effective borrowing cost for a commercial property: The total acquisition price is 1 , 2 1 0 , 0

Given the following information, calculate the effective borrowing cost for a commercial property: The total acquisition price is 1,210,000. The developer asks for a commercial mortgage with 75% LTV. Amortization term: 30 years, interest rate: 8%; Upfront financing costs 5%. The developer hold the loan for 5 years and sell the property at year 5.

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