Consider the following: Purchase Price: $800,000 Amount financed: 85% Interest rate: 7.25% Amortization period: 30 years Investor's tax rate: 35% Calculate: a. Loan amount (round to nearest dollar) b. Interest paid - year one (round to nearest dollar) c. Reduction in taxes (round to nearest dollar) d. Effective interest rate (round to tenth of a percent) e. State whether this will increase' or 'decrease the true cost of funds for the investor