You just borrowed $$400,000$ 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 $6\mathrm{.}72\%$ pa compounding monthly which is not expected to change.

Which of the following statements is NOT correct?

Question $5$Select one:

a$.$

The effective monthly rate is $0\mathrm{.}056$ 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 $178\mathrm{.}571429,$ while the P&I loan's annuity factor is $147\mathrm{.}30132.$

d$.$

The IO loan payments will be $$2,240$ per month, rounded to the nearest cent.

e$.$

The P&I loan payments will be $$2,715\mathrm{.}52$ per month, rounded to the nearest cent.