Simple Interest
Compound Interest
Mortgages
Sampling & Data
Core Vocabulary
100
I = P r t
Formula for simple interest?
100
$120
Find interest on $1000 at 6% for 2 years.
100
$1,120
Future value of $1000 with simple interest of $120?
100
r = I/(Pt)
Solve simple interest formula for rate r.
100
3 years
If I=$90, P=$600, r=5%, find t.
100
A = P(1+r/n)^(nt)
Compound interest formula?
100
$1,102.50
$1000 at 5% compounded annually for 2 years (nearest cent).
100
Compounding earns more
Which earns more over time, simple or compound interest at same rate?
100
12
For monthly compounding, n equals what?
100
Effective annual yield
Name for actual annual return when compounding is included.
100
Amortization schedule
Table that shows payment split between principal and interest?
100
Long-term loan secured by home
Define mortgage.
100
Principal and interest
Two main parts of a monthly mortgage payment?
100
Higher payment, less total interest
What happens when loan term shortens from 30 to 15 years?
100
Escrow
Account often used to collect property taxes and insurance?
100
Simple random sample
Every member has equal chance of selection.
100
Stratified sample
Population divided into groups, then sampled from each group.
100
Cluster sample
Entire groups are randomly selected.
100
Population
The entire group you want information about.
100
Sample
The subset actually observed or surveyed.
100
Mean
Arithmetic average.
100
Median
Middle value in ordered data.
100
Mode
Most frequent value.
100
Range
Difference between maximum and minimum.
100
Bias
Systematic error caused by poor sampling or question wording.
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