Simple Interest
Compound Interest
Mortgages
Stats Terms
Mixed Review
100
$300
Use I = Prt. Find interest on $2,000 at 5% for 3 years.
100
principal
In simple interest, interest is calculated on this amount only.
100
2 years
A loan of $800 earns $96 interest at 6% simple interest. Find time.
100
Annual Percentage Rate
What does APR stand for?
100
principal + interest
Future value under simple interest equals ____ + ____.
100
A = P(1 + r/n)^(nt)
Write the compound interest formula for amount.
100
12
Compounding monthly means n equals ____.
100
$1,123.60
$1,000 at 6% compounded annually for 2 years grows to what amount?
100
previously earned interest
Compound interest earns interest on principal and _____.
100
compound
Which grows faster over time at same nominal rate: simple or compound?
100
monthly
Mortgage payments are usually made how often?
100
interest
An amortization schedule shows payment split into principal and _____.
100
interest paid
Increasing the loan term usually lowers monthly payment but increases total _____.
100
insurance
Escrow in a mortgage often covers taxes and homeowners _____.
100
increase
If interest rate rises and everything else stays the same, monthly payment tends to _____.
100
sample
A subset of a population used to collect data is a _____.
100
discrete
Numerical data from counting are called ____ data.
100
continuous
Numerical data from measuring are called ____ data.
100
bias
A systematic error that skews results is called _____.
100
outlier
A value that is far from the rest of the data is an _____.
100
$30
Find simple interest: P=$500, r=8%, t=9 months.
100
$1,000
What is the principal if A=$1100 after 1 year at 10% simple interest?
100
increases
If a mortgage payment is fixed, over time the principal portion generally _____.
100
time in years
In A=P(1+r/n)^(nt), what does t represent?
100
reduces bias / improves representativeness
Name one advantage of random sampling.
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