Terms of a 7,000 loan are as follows: 60 equal monthly payments starting at the end of the first month, 8% nominal interest rate convertible monthly An alternative is offered: Monthly payments calculated as above. First payment not due until the end of the fifth month. An extra payment made at the end of the 60th month for the balance of the loan. Determine the amount of the extra payment in the alternative payment scheme.

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.