Simple Interest
Compound Interest
Mortgages
Statistical Terms
Mixed Review
100
I = P·r·t
State the simple interest formula using principal P, rate r, and time t.
100
$120
Find the simple interest on $800 at 5% for 3 years.
100
$1,860
Find the future value A for $1,500 at 6% simple interest for 4 years.
100
5%
A loan of $2,400 earns $360 in simple interest over 3 years. What annual rate was used?
100
6.25 years
How long will it take $5,000 to earn $1,250 at 4% simple interest?
100
A = P(1 + r/n)^(nt)
Write the compound interest formula for future value.
100
$1,080
Find the amount after 1 year for $1,000 at 8% compounded annually.
100
Compound interest
Which grows more in 3 years: 6% simple interest or 6% compounded annually?
100
24 periods
For 5% APR compounded monthly, how many compounding periods are there in 2 years?
100
$2,249.73
If $2,000 grows at 4% compounded annually for 3 years, what is the amount (nearest cent)?
100
Paying off a loan over time with scheduled payments that cover interest and principal
What does mortgage amortization mean?
100
Interest rate (and typically the payment amount)
A fixed-rate mortgage keeps what value the same over the loan term?
100
Principal and interest
Name the two main parts of each regular mortgage payment.
100
It decreases
If you pay extra principal each month, what happens to total interest paid?
100
360 payments
A 30-year mortgage has about how many monthly payments?
100
The entire group of interest
Define population in statistics.
100
A subset of the population
Define sample in statistics.
100
A numerical summary of a population
What is a parameter?
100
A numerical summary computed from a sample
What is a statistic (in inferential statistics)?
100
Undercoverage bias
What type of bias occurs when some groups are less likely to be included in a survey?
100
4.5
A dataset has values 2, 2, 5, 9. What is the mean?
100
Example: mean and standard deviation
Name one measure of center and one measure of spread.
100
Sampling bias (undercoverage/time-of-day bias)
A survey of only morning students asks about campus parking. What problem is likely?
100
Loan principal balance
If a mortgage payment goes mostly to interest early on, what decreases slowly?
100
Statistic
A sample result is used to estimate a population value. Is that value a parameter or a statistic?
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