For these types of problems, plug the value inside the ( ) into the (x) of the equation.
g (-3), g (x) = 2x-2
g (x) = 2 (-3) - 2 = -6 - 2 = -8
g (-3) = -8
If Mike is willing to pay no more than an effective rate of 8.000% annually, the loans that meet his criteria are loan X and loan Z. Of those two, the lowest would be loan X. I hope the answer will help you :)
11/12 divided by 5/7 should be 0.02619047619 you can double check it though