You borrowed $30,000 for 5 years at an annual interest rate of 6% to finance the purchase of a new car. The loan agreement calls for 60 equal payments, to be paid at the end of each month in the next 5 years. Which of the following statements is incorrect?

1. The effective annual interest rate is greater than 6%
2. The amount of interest included in the monthly payment declines over time
3. The amount of principal repayment included in the monthly payment declines over time
4. The first payment includes an interest payment of $150

Please provide a brief explanation