Peter took a fixed-rate, fully amortizing mortgage loan for a 5% interest rate for 10 years (monthly compounding loan), with the loan amount being $90,000. The lender allows him to pay $200 monthly payments for the first three year. Assume negative amortization is allowed. What will be the accrued interest or the amount of increased loan balance for the loan three years later from now?

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.