Donna borrowed $400,000 from Bank of America on a 6% 30-year installment loan

with monthly payments. How would the payment be determined?

A. Multiply $400,000 times the interest factor for 30 years at 6%.

B. Multiply $400,000 times the interest factor for 30 years at 1/2%.

C. Divide $400,000 by the interest factor for 30 years at 1/2%.

D. Divide $400,000 by the interest factor for 30 years at 1%.