Simple Interest
Compound Interest
Mortgages
Stats Vocabulary
Data & Sampling
100
I = Prt
State the simple interest formula.
100
$60
Find simple interest on $500 at 6% for 2 years.
100
$1,008
Total amount with simple interest for P=$900, r=4%, t=3 years?
100
2 years
If I=$96, P=$800, r=6%, solve for t.
100
Compound interest
Which grows faster over time: simple or compound interest?
100
A = P(1 + r/n)^(nt)
State the compound interest formula.
100
1
For annual compounding, what is n?
100
Rule of 72
Money doubles about every 72/r years. This is called what?
100
12
If interest is compounded monthly, how many periods per year?
100
Daily compounded amount
Compare: same P, r, t. Which is larger, annually or daily compounded amount?
100
The amount borrowed
What is the principal in a mortgage?
100
The interest rate (and payment pattern)
A fixed-rate mortgage keeps what unchanged?
100
Property taxes and insurance
What does escrow commonly pay for?
100
Amortization
If your monthly payment is mostly interest early on, this is due to what?
100
Higher rate, longer term, larger principal, fees, etc.
Name one factor that increases total mortgage cost.
100
Statistic
A numerical characteristic of a sample is called a _____.
100
Parameter
A numerical characteristic of a population is called a _____.
100
Mean
The average value is the _____.
100
Median
The middle value in ordered data is the _____.
100
Bar graph (bar chart)
A graph for categorical data with separated bars is a _____.
100
Simple random sampling
What sampling method gives every member an equal chance?
100
Systematic sample
Selecting every 10th person is what type of sample?
100
Bias (voluntary response bias)
Sampling only volunteers can cause what issue?
100
Census
Data collected from an entire group is called what?
100
Sampling variability
Variation in a sample due to chance alone is called what?
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