You just borrowed $1,200,000 using a 30 year home loan that's interest-only for the first 4 years, and principal and interest (P&I) for the remaining 26 years. The interest rate is 5.4% pa compounding monthly which is not expected to change.

Which of the following statements is NOT correct? Select one:

a. The effective monthly rate is 0.0045 per month, given as a decimal. If the interest rate falls, the IO and P&I monthly payments will fall.

b. If the IO term was one year shorter so the P&I term was one year longer, then the monthly payments over the P&I term would be lower.

c. The IO loan's perpetuity factor' is 222.222222, while the P&I loan's annuity factor is 167.469481.

d. The IO loan payments will be $6,738.37 per month, rounded to the nearest cent.

e. The P&I loan payments will be $7,165.48 per month, rounded to the nearest cent.