Calculate the effective annual cost of borrowing for each of the following three financing alternatives. All interest

Question:

Calculate the effective annual cost of borrowing for each of the following three financing alternatives. All interest rates are for a 7-year term and all mortgages use a 20-year amortization to calculate the monthly payments. Bank B will lend $90,000 at 10.75% compounded semiannually. Credit union C will lend $90,000 at 10.5% compounded monthly. Mortgage M will lend $93,000 at 10.25% compounded semiannually but will retain $3000 as a brokerage fee. Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...