Simple Interest
Compound Interest
Mortgages & Loans
Sampling & Bias
Stats Vocabulary
100
$90
Use I = Prt. Find the interest on $500 at 6% for 3 years.
100
$1,296
Find the future value with simple interest: P=$1,200, r=4%, t=2 years.
100
$600
A loan charges $150 interest over 5 years at 3% simple interest. What was the principal?
100
2.5 years
For simple interest, if P=$2,000, r=5%, and the interest earned is $250, how long was the money invested?
100
False
True or False: With simple interest, interest is earned on both the principal and previously earned interest.
200
A = P(1 + r/n)^(nt)
Write the compound interest formula for amount A after t years (compounded n times per year).
200
$1,061.68
Find A: P=$1,000, r=6% annually, n=12, t=1 year (nearest cent).
200
Monthly
Which grows faster: compounding monthly or compounding yearly (same P, r, t)?
200
5.2 years
Solve for t: $500 grows to $650 at 5% compounded annually. (Give t to nearest tenth of a year.)
200
Interest is added/credited every day (365 times per year).
A savings account advertises 4% APR compounded daily. What does “compounded daily” mean?
300
Principal and interest
In an amortized loan payment, what are the two main parts of each payment?
300
The amount originally borrowed (or the remaining balance before interest).
Define principal (in the context of a loan).
300
0.01
A $10,000 loan has APR 12% with monthly payments. What is the monthly interest rate i (as a decimal)?
300
Beginning
If a 30-year mortgage has a fixed monthly payment, do you pay more interest at the beginning or the end of the loan term?
300
Benefit: paid off sooner/less total interest; Drawback: higher monthly payment.
Name one benefit and one drawback of a 15-year mortgage compared to a 30-year mortgage.
400
The entire group of individuals/objects being studied
In statistics, what is the population?
400
A subset of the population
In statistics, what is a sample?
400
Systematic sample
Which sampling method surveys every 10th person who enters a store?
400
Voluntary response (self-selection) bias
A survey is posted on social media and only volunteers respond. What kind of bias is this?
400
Statistic
Parameter or statistic? “The mean GPA of 40 students selected from the college is 2.85.”
500
Mean
What measure of center is also called the “average” (add and divide)?
500
Median
What measure of center is the “middle” value when data are ordered?
500
Max − min
What is the range of a data set?
500
Categorical
Categorical or quantitative? Eye color.
500
Discrete
Discrete or continuous? The number of text messages sent in a day.
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