The correct answers are 0, 5, and 8. Clearly, having negative bags isn't feasible. Additionally, 10 is not possible since the balloon has a weight limit.
When the present value and number of periods remain the same, but the interest rate is reduced, this results in decreased monthly payments required. Thus, option a) decrease the monthly payment stands true. Monthly payments will rise if the interest rate increases, and they cannot be erased.
