Simple Interest
Compound Interest
Mortgages
Stats Terms
Mixed Review
100
I = Prt
What is the simple interest formula?
100
interest earned on principal plus previous interest
What does compound mean in finance?
100
a home or real estate
A mortgage is a loan used to buy what?
100
the entire group of interest
A population is what?
100
true
True or false: In compound interest, interest can earn interest.
200
$40
Find the interest on $500 at 4% for 2 years.
200
compound interest
Which grows faster over time: simple or compound interest?
200
interest
Most mortgage payments include principal and what other major charge?
200
a subset of the population
A sample is what?
200
$120
A $2,000 simple-interest loan at 6% for 1 year has interest of how much?
300
$1,380
Find the total payoff on a simple-interest loan of $1,200 at 5% for 3 years.
300
$121
Use A = P(1+r)^t. If P = $100, r = 10%, and t = 2, what is A?
300
the rate stays fixed and the loan is scheduled to be paid off over 30 years
What does a 30-year fixed mortgage mean?
300
qualitative or categorical
A variable that uses labels like major or eye color is what type?
300
decrease
If part of each mortgage payment goes to principal, the loan balance will generally do what over time?
400
the original amount borrowed or invested
In simple interest, what is the principal?
400
about 12 years
About how many years will it take money to double at 6% using the Rule of 72?
400
splitting each payment between interest and principal over time
Amortization is the process of doing what?
400
convenience sample
A sample chosen because it is easy to reach is called what?
400
bias
The part of a study that can unfairly influence the results is called what?
500
5%
Solve for the rate: I = $90, P = $600, t = 3 years.
500
about $1,157.63
About how much is $1,000 at 5% compounded annually for 3 years worth?
500
a longer term
Which usually increases total interest paid: a longer mortgage term or a shorter mortgage term?
500
a statistic
A value that describes a sample is called what?
500
a random sample from the school
Which is more representative of a school: surveying 20 friends or taking a random sample from the school?
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