Simple Interest
Compound Interest
Mortgages/Loans
Stats Terms
Mixed Review
100
What is principal?
In I = Prt, this letter stands for the initial amount borrowed or invested.
100
What is the number of compounding periods per year?
In A = P(1+r/n)^(nt), n means this.
100
What is amortization?
A loan repaid with equal payments over time follows this process.
100
What is the population?
The whole group under study is called this.
100
What is monthly compounding?
At the same stated APR and time, this usually costs more overall: simple interest or monthly compounding.
200
What is $60?
Find the simple interest on $500 at 6% for 2 years.
200
What is yes?
Does compound interest grow faster than simple interest over the same principal, rate, and time?
200
What are principal and interest?
Each mortgage payment is split into these two parts.
200
What is a sample?
A subset of the population is called this.
200
What is the population?
Results from a biased sample may fail to represent this larger group.
300
What is $1,380?
Find the total amount repaid if P=$1,200 at 5% simple interest for 3 years.
300
What is $1,102.50?
Find the amount for $1,000 at 5% compounded annually for 2 years.
300
What is interest?
Early in a fixed-rate mortgage, more of each payment goes to this.
300
What is a statistic?
A numerical summary computed from a sample is called this.
300
What is $1,100?
Borrow $1,000 at 10% simple interest for 1 year. Total repaid?
400
What is 5%?
Solve for the simple interest rate if I=$90, P=$600, t=3 years.
400
What is 12?
For $500 at 6% compounded monthly, n equals this number.
400
What is 360?
A 30-year mortgage with monthly payments has this many payments.
400
What is a parameter?
A numerical summary of a population is called this.
400
What is an amortized loan (or conventional mortgage loan)?
A fixed monthly payment whose principal/interest portions change over time is this type of loan.
500
What is because interest earns interest?
Explain in words why compound interest exceeds simple interest over time.
500
What is monthly compounding?
Which earns more after 1 year on $1,000 at 8%: annual compounding or monthly compounding?
500
What is increase?
If interest rates rise, the monthly payment on a new mortgage for the same loan amount tends to do this.
500
What is a simple random sample?
A sampling method giving every member an equal chance is called this.
500
What is convenience sampling or sampling bias?
Surveying only your friends about campus food creates this problem.
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