Simple Interest
Compound Interest
Mortgages/Loans
Stat Terms & Sampling
Mixed Finance+Stats
100
I = P r t
Simple interest formula (using principal P, rate r, time t)?
100
$100
If P=$1000, r=5%, t=2 years, simple interest I=?
100
How payments split between principal and interest over time
What does amortization describe in a mortgage?
100
Mean
Name the measure of center most affected by outliers.
100
Population
A sample is a subset of what larger group?
200
FV = P + I = P(1+rt)
Future value with simple interest: principal plus what?
200
Principal and previously earned interest
Compounding means interest is earned on what?
200
360
A fixed-rate 30-year mortgage usually has how many monthly payments?
200
Categorical (qualitative)
Data type: values are labels like color or major.
200
Compound interest
If rates are equal, which grows faster over time: simple or compound?
300
$700
Find I for P=$2500, r=7%, t=4.
300
A = P(1 + r/n)^(nt)
Compound FV formula with n compounds per year?
300
Property taxes and insurance
Escrow in mortgage payments usually covers what two costs?
300
Random sampling
A method that uses a random process to select individuals is called what?
300
11
Median of 3, 9, 11, 20, 100?
400
Linear (straight line)
Simple interest graph over time is typically what shape?
400
Greater than
Effective annual yield is generally ___ nominal rate when compounding occurs multiple times.
400
Interest
In early mortgage payments, more of the payment goes to what?
400
Spread/variability around the mean
Standard deviation measures what?
400
Sampling bias / not representative
Convenience sample risk?
500
Discounted value today
Present value asks: what amount today equals a future amount at a given rate?
500
Increases
If compounding frequency increases, accumulated amount usually does what?
500
Amortization schedule
What document shows each scheduled mortgage payment and balance?
500
Parameter describes population; statistic describes sample
Difference between parameter and statistic?
500
Quantitative variable
A histogram is best used for what kind of variable?
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