Simple Interest
Compound Interest
Mortgages
Statistical Terms
Mixed Applications
100
Principal
What is the original amount of money borrowed or invested called?
100
Interest is earned on principal and previously earned interest.
What feature makes compound interest different from simple interest?
100
A loan used to purchase real property, usually a home.
What is a mortgage?
100
Population
What term describes all individuals or items of interest in a study?
100
Compound interest
Which type of interest grows faster over time at the same positive rate: simple or compound?
200
Annual interest rate
In I = Prt, what does r represent?
200
A = P(1 + r/n)^(nt)
State the compound-interest formula for n compounding periods per year.
200
The upfront amount paid toward a purchase.
What is a down payment?
200
Sample
What term describes a subset selected from a population?
200
$225,000
A home costs $250,000 and the down payment is 10%. What amount is borrowed?
300
$60
Find the simple interest on $500 at 4% for 3 years.
300
$1,210
Find the value of $1,000 at 10% compounded annually for 2 years.
300
The interest rate stays the same for the loan term.
What does a fixed interest rate mean?
300
Parameter
What is a numerical measure describing a population called?
300
A convenience sample
What kind of sample is most likely biased: a random sample or a convenience sample?
400
$560
What is the accumulated amount for the previous question?
400
About $2,122.73
Find the value of $2,000 at 6% compounded quarterly for 1 year.
400
$160,000
A $200,000 home requires a 20% down payment. What is the mortgage principal?
400
Statistic
What is a numerical measure describing a sample called?
400
Yes
Can a sample statistic be used to estimate a population parameter?
500
6%
A $600 investment earns $72 in simple interest over 2 years. What annual rate was used?
500
Compound interest; about $629.86 versus $620
Compare $500 at 8% for 3 years: compound annually or simple interest. Which amount is greater?
500
About $1,079.19
Approximate the monthly principal-and-interest payment on $180,000 for 30 years at 6%.
500
Quantitative (discrete)
Is “number of classes taken” qualitative or quantitative data?
500
$1,102.50
A $1,000 investment earns 5% compounded annually for 2 years. Find the balance.
M
e
n
u