Simple Interest
Compound Interest
Mortgages
Statistical Terms
Mixed Review
100
I = PRT
What formula is used for simple interest?
100
$40
Find the simple interest on $500 at 4% for 2 years.
100
$180
If P = 1200, r = 0.05, and t = 3, find I.
100
$1,040
What is the future value of $800 at 6% simple interest for 5 years?
100
$210
A loan of $2,000 charges 7% simple interest for 18 months. How much interest is owed?
200
A = P(1 + r/n)^(nt)
What is the basic compound interest model for future value?
200
$1,050
If $1,000 earns 5% compounded annually for 1 year, what is the balance?
200
$1,102.50
If $1,000 earns 5% compounded annually for 2 years, what is the balance rounded to the cent?
200
Yes
Does compound interest usually earn more than simple interest over the same time?
200
Interest earns interest
Why does compound interest grow faster over time?
300
The amount borrowed or unpaid loan balance
In a mortgage payment, what is principal?
300
How each payment is split between interest and principal over time
What does amortization describe?
300
360
If a mortgage term is 30 years and payments are monthly, how many payments are there?
300
It increases
What usually happens to the share of a payment going to principal over time in a fixed-rate mortgage?
300
Examples: taxes, insurance, maintenance, HOA fees
Name one cost of homeownership besides the mortgage payment.
400
The entire group of interest
What is a population in statistics?
400
A subset of the population
What is a sample?
400
Qualitative or categorical data
Data that are categories are called what?
400
Statistic
A value calculated from a sample is called a what?
400
Simple random sampling
What sampling method gives every possible sample of a given size an equal chance?
500
$6
A bank account earns 2% simple interest on $300 for 1 year. Interest earned?
500
Sample
A survey of 50 students is used to estimate all students on campus. The 50 students are the what?
500
Compound interest
Which is more appropriate for long-term savings: simple interest or compound interest?
500
True
True or false: biased samples can lead to misleading conclusions.
500
$14,400
A mortgage payment is $1,200 per month. About how much is paid in 1 year?
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