Simple Interest
Compound Interest
Mortgages
Basic Statistical Terms
Data & Sampling
100
$60
Use I = Prt. 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%
A loan earns $45 simple interest on $300 over 5 years. Find the annual rate.
100
3 years
How long will it take $800 to earn $192 at 8% simple interest?
100
the original principal
Under simple interest, interest each year is calculated on this amount only.
100
A = P(1 + r/n)^(nt)
Write the compound interest amount formula.
100
$1,102.50
$1,000 at 5% compounded annually for 2 years grows to what amount?
100
larger
At the same principal, rate, and time, monthly compounding gives a final amount that is ___ than annual compounding.
100
8 years
Using the Rule of 72, money at 9% interest doubles in about how many years?
100
$2,123.36
$2,000 at 6% compounded monthly for 1 year grows to about what amount?
100
a mortgage
This is a long-term loan used to buy a home.
100
$200,000
A home costs $250,000 and the down payment is $50,000. What is the amount financed?
100
360
A 30-year mortgage with monthly payments has how many payments?
100
interest
In the early years of a fixed-rate mortgage, most of each payment goes to interest or principal?
100
decrease
If you make a larger down payment, your monthly mortgage payment will usually do what?
100
population
The entire group you want information about.
100
sample
The part of the population actually studied.
100
statistic
A numerical summary of a sample.
100
parameter
A numerical summary of a population.
100
variable
A characteristic recorded for each person or object in a study.
100
categorical
Eye color is this type of data: categorical or quantitative?
100
quantitative
Height measured in inches is this type of data: categorical or quantitative?
100
simple random sample
Sampling method where every member of the population has an equal chance of selection.
100
undercoverage
Bias caused by leaving out part of the population.
100
experiment
A study that imposes a treatment on subjects to observe a response.
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