Show:
Simple Int.
Compound Int.
Mortgages
Stats Terms
Sampling/Data
100
$40
Find the simple interest on $500 at 4% for 2 years.
100
$1,380
Find the total payoff on $1,200 at 5% simple interest for 3 years.
100
3 years
If I = $90, P = $600, and r = 5%, find t in years using I = Prt.
100
$120
Borrow $2,500 at 7.2% simple interest for 8 months. How much interest will you pay?
100
Loan B by $30
Loan A: $1,000 at 9% for 2 years. Loan B: $1,000 at 7% for 3 years. Which has more simple interest, and by how much?
200
$1,050
Find the future value of $1,000 at 5% compounded annually for 1 year.
200
Because interest is earned on previous interest as well as on the principal.
Why is compound interest usually larger than simple interest over the same term and rate?
200
$2,163.20
Find the future value of $2,000 at 4% compounded annually for 2 years.
200
Compounding monthly
At a nominal 6% annual rate, which grows more in one year: compounding monthly or annually?
200
About 6.14%
Find the effective annual yield for 6% interest compounded quarterly. Round to the nearest hundredth of a percent.
300
A long-term loan used to buy a home and secured by the property.
What is a mortgage?
300
Principal reduces the loan balance; interest is the cost of borrowing.
In a mortgage payment, what is the difference between principal and interest?
300
360
A 30-year mortgage with monthly payments has how many payments?
300
The 15-year mortgage
If two mortgages have the same principal and rate, which usually has the higher monthly payment: a 15-year or a 30-year mortgage?
300
Because it lowers the amount borrowed (the principal).
Why does a larger down payment usually reduce total interest paid?
400
Population
What do we call the entire group we want to study?
400
Sample
What do we call a smaller group selected from the population?
400
Qualitative or categorical data
Data such as college major, eye color, or favorite music style are what type of data?
400
Quantitative data
Data such as hours worked, test scores, or commute miles are what type of data?
400
Statistic; parameter
A value computed from a sample is a ________; a value describing a population is a ________.
500
Systematic sample
Surveying every 10th student who exits the library is what kind of sample?
500
Simple random sample
Selecting names from a complete student list with a random number generator gives what type of sample?
500
Convenience sampling or sampling bias
If you only survey people at the gym about exercise habits, what problem is likely present?
500
Because people who do not respond may differ from those who do respond.
Why can nonresponse create bias?
500
Stratified sample
You divide students by dorm floor, then randomly select students from each floor. What type of sample is this?