Please provide clear calculations/explanations, as indicated, for the following question. You can choose between two mortgage contracts: A. "You pay 2.50 percent APR paid monthly for the next 40 years". B. "You pay 7.50 percent APR paid quarterly for the next 40 years". Elise argues that "Under contract A you'd pay 2.5% twelve times per year, so that's 30.0% per year, and under contract B you'd pay 7.5% but only four times per year, so that's again 30.0% per year, thus the two contracts are equally good". Is Elise correct? Would prefer one contract over the other, and in that case, which contract would you prefer? Why?