Use the information below to answer the following question. You have cash on hand Property value $400,000 Down payment is $120.000 (i.c. LVR is 70%) Loan #1 - $200,000 Loan #2 - $80,000 Interest rate (nominal) for Loan #1 is 8.40% per annum compounded semi-annually Interest rate for Loan #2 is 9% per annum compounded semi-annually Processing fees is $2,500 No cancellation penalty Mortgage payment paid annually Term of loan 12 years What is the effective cost of borrowing (ECB)? 8.89% 8.93% 8.70% 8.78% None of the above