Simple Interest
Compound Interest
Mortgages
Statistics Terms
Mixed Review
100
$40
Use I = Prt. Find the interest on $500 at 4% for 2 years.
100
$920
Find the total amount on $800 at 5% simple interest for 3 years.
100
6%
If I = $72, P = $600, and t = 2 years, find r.
100
$31.50
Find the simple interest on $1,200 at 3.5% for 9 months.
100
$2,200
You borrow $2,000 at 8% simple interest for 15 months. What amount do you owe?
100
compound interest
The formula A = P(1 + r/n)^(nt) models what kind of growth?
100
$1,102.50
Find the amount on $1,000 at 5% compounded annually for 2 years.
100
monthly compounding
At the same APR, which earns more after 1 year: annual compounding or monthly compounding?
100
$530.84
Find the amount on $500 at 6% compounded monthly for 1 year. Round to the nearest cent.
100
because interest is earned on both principal and previously earned interest
Why does compound interest usually exceed simple interest over time?
100
a home or real estate
A mortgage is a loan used to buy what?
100
principal and interest
In an amortized mortgage payment, the two main parts are what?
100
interest
Early in a 30-year mortgage, most of the payment goes toward what?
100
it decreases
If the down payment increases, what happens to the amount financed?
100
the interest rate (and usually the principal-and-interest payment)
In a fixed-rate mortgage, what stays the same over the life of the loan?
100
population
What do we call the entire group we want information about?
100
sample
What do we call a smaller group selected from the population?
100
a statistic
What is a numerical summary computed from a sample called?
100
a parameter
What is a value that describes a population called?
100
qualitative or categorical data
Data recorded as labels such as eye color or college major are what type of data?
100
compound interest
A bank advertises 4% APR compounded monthly. Is this simple or compound interest?
100
systematic sampling
You survey every 10th student entering the library. What sampling method is this?
100
remaining balance or principal balance
On a mortgage amortization table, what do we call the unpaid amount left on the loan?
100
a 30-year mortgage
For the same loan amount, which usually leads to more total interest paid: a 15-year mortgage or a 30-year mortgage?
100
the compound-interest account
You invest $1,000 at 5% simple interest and another $1,000 at 5% compound interest for 5 years. Which account ends with more money?
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