Simple Interest
Compound Interest
Mortgages and Loans
Statistical Terms
Sampling and Data
100
$60
Use I = Prt. Find the simple interest on $500 at 4% for 3 years.
100
Interest earned on principal and on previously earned interest; interest on interest.
What phrase describes compound interest?
100
The amount borrowed before interest.
What is principal in a loan?
100
The entire group being studied.
What is a population?
100
A simple random sample.
A sample selected so every member has an equal chance of selection is called what?
200
$1,344
A loan has principal $1,200 and simple interest $144. What is the maturity value?
200
$1,102.50
$1,000 earns 5% compounded annually for 2 years. Find the balance.
200
Principal and interest.
For the loan-payment portion of a typical mortgage payment, what two components are paid?
200
A subset of a population used to gather data.
What is a sample?
200
Systematic sampling.
Selecting every 10th name from an ordered list is what sampling method?
300
1.5 years
A $900 simple-interest loan earns $81 interest at 6% annually. How long is the term?
300
$2,122.73
$2,000 at 6% compounded quarterly for 1 year has what balance, rounded to cents?
300
Interest.
In a standard amortized fixed-rate mortgage, early payments generally contain more what than later payments?
300
Categorical data.
Is favorite music genre categorical or quantitative data?
300
It may be biased or not representative of the population.
Why can a convenience sample lead to weak conclusions?
400
6%
Find the annual simple interest rate if P = $2,000, I = $240, and t = 2 years.
400
$1,690.91
$1,500 at 4% compounded monthly for 3 years has what balance, rounded to cents?
400
A fixed-rate mortgage keeps the rate unchanged; an adjustable-rate mortgage can change rate according to its terms.
How does a fixed-rate mortgage differ from an adjustable-rate mortgage?
400
Discrete quantitative data.
Is number of classes taken this term discrete or continuous quantitative data?
400
No. Samples naturally vary.
If two random samples from the same population differ, does that automatically mean one sample is wrong?
500
$3,689
Find the payoff amount for $3,500 at 7.2% simple interest for 9 months.
500
About 6.17%.
What is the effective annual growth rate for 6% nominal interest compounded monthly, rounded to two decimal percent?
500
$216,000
A home costs $240,000 and the buyer makes a 10% down payment. What loan principal remains before closing costs?
500
A statistic.
A numerical characteristic of a sample is called what?
500
Use a random/representative sampling plan; avoid convenience-only or self-selected samples.
Name one way to reduce sampling bias in a survey.
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