Simple Interest
Compound Int.
Mortgages
Stat Terms
Mixed Review
100
I = P × r × t
What is the simple interest formula for interest earned?
100
$60
Find the simple interest on $500 at 6% for 2 years.
100
$1,380
Find the total amount on $1,200 at 5% simple interest for 3 years.
100
3 years
If I = $90, P = $600, and r = 5%, what is t?
100
Compound interest
At the same rate and time, which earns more: simple or compound interest?
100
A = P(1 + r)^t
Write a compound interest amount formula (annual compounding).
100
$1,081.60
Find A for $1,000 at 4% compounded annually for 2 years.
100
Previously earned interest
Compound interest is interest earned on principal plus what?
100
About $530.84
Approximate A for $500 at 6% compounded monthly for 1 year.
100
About 8%
By the Rule of 72, a doubling time of 9 years is about what annual rate?
100
A home (real estate)
A mortgage is a loan used to buy what?
100
Interest and principal
Each mortgage payment is split between what two parts?
100
Interest
At the beginning of a mortgage, is more of the payment interest or principal?
100
Up (negative amortization)
If a payment is less than the monthly interest due, the balance goes ____.
100
Less total interest paid
Why choose a 15-year mortgage over a 30-year mortgage?
100
Population
The entire group you want to study is called the ____.
100
Sample
The subset of the population you collect data from is the ____.
100
Statistic
A numerical summary calculated from a sample is a ____.
100
Parameter
A numerical summary that describes a population is a ____.
100
Simple random sample
Sampling method where every member has an equal chance of selection:
100
$60
Simple interest on $2,000 at 3% for 1 year:
100
Compound interest
Which grows faster over multiple periods: simple or compound interest?
100
Amortization
The table showing each mortgage payment split is the ____ schedule.
100
Sample size
A survey of 80 students uses 80 as the ____.
100
Compound (effective annual yield)
A bank advertises 5% APY. APY reflects what kind of growth?
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