You just borrowed $1,300,000 using a 25 year home loan that's interest-only for the first 5 years, and principal and interest (P&I) for the remaining 20 years.

The interest rate is 4.68% 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 0.0039 per month, given as a decimal. If the interest rate rises, the IO and P&I monthly payments will rise.

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

c. The IO loan's perpetuity factor' is 256.410256, while the P&I loan's annuity factor is 155.664589.

d. The IO loan payments will be $5,070 per month, rounded to the nearest cent.

e. The P&I loan payments will be $7,359.28 per month, rounded to the nearest cent.