Answer:
B. An increase in i, the interest rate, will create an increase in P, the monthly payment.
Step-by-step explanation:
We have the formula for the monthly payment as,
 ,
,
where P = monthly payment, i = rate of interest, PV = present value and n = time period.
Now, as i increase we get that (1+i) increases and so  increases.
 increases.
This gives us that,  decreases and so
 decreases and so  decreases
 decreases
Therefore,  increases.
 increases.
So, we get that as i increases , the value of P will increase.
Hence, option B is correct.