You applied for a mortgage of $60000 to purchase a new home. The bank require that you pay annual amounts of $7047.55 at the end of each year for the next 20 years. Determine the interest rate?

If you had a choice between obtaining a loan from bank A & bank B where loan rate A=12% compounded monthly Loan rate B=12.25% compounded semi-annually, which loan would be chosen?

Show workings or explain the reason for choosing one or the other