Raven is considering taking out a 30-year loan with monthly payments of
$145 at an APR of 1.3%, compounded monthly, and this equates to a loan of
$43,205.56. Assuming that the APR and the length of the loan remain fixed,
which of these is a correct statement?

If Raven's monthly payment were $125, the amount of the loan that she is considering taking out  would be less than $43,205.56.

Step-by-step explanation:

If you think about it this way it may be more simple. If the APR stays constant then a greater payment will result in a greater loan. The opposite is also true meaning a lesser payment will result in a lesser loan. If the amount Raven pays is greater than $145 then the loan will be greater than $43,205.56. If the amount she pays is less than $145 then the loan will be less than $43,205.56. Of the options, only one of these situations will be present. In my case, the correct option was a payment of $125 will result in a lesser loan than $43,205.56.