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Simple Interest
Compound Interest
Mortgages
Statistics Terms
Mixed Applications
100
$30
Use I = Prt with P = 200, r = 0.05, and t = 3. Find I.
100
Interest earned on both the principal and previously earned interest
What does compound interest mean?
100
An amortized home loan
A mortgage is what type of loan?
100
A sample
A subset of a population used to draw conclusions is called what?
100
$20
$500 at 4% simple interest for 1 year earns how much interest?
200
$560
Find the total amount on $500 at 6% simple interest for 2 years.
200
$1,102.50
Find the amount on $1,000 at 5% compounded annually for 2 years.
200
Principal and interest
Each mortgage payment usually includes what two parts?
200
Quantitative data
Numerical data that are measured or counted are called what?
200
The sample
In a school survey of 100 students chosen from the whole college, the 100 students are the what?
300
5%
If I = 45, P = 300, and t = 3 years, find the simple interest rate.
300
A = P(1 + r/n)^(nt)
Write the general compound interest formula.
300
Interest
Early mortgage payments are mostly which component?
300
Qualitative or categorical data
Data described with labels or categories are called what?
300
The mean
Which measure of center is commonly called the average?
400
2 years
If I = 120, P = 800, and r = 7.5%, solve for time in years.
400
Compound interest
Which grows more over time at the same annual rate: simple interest or compound interest?
400
It increases
If the interest rate goes up but principal and term stay the same, what happens to the monthly mortgage payment?
400
A statistic
A numerical summary of a sample is called what?
400
An amortized mortgage
A $200,000 loan repaid with fixed monthly payments over many years is what kind of structure?
500
$200 interest and $1,200 total
On $1,000 at 4% simple interest for 5 years, what are the interest and final amount?
500
12
For 6% compounded monthly, what value of n is used in the formula?
500
A table showing each payment’s interest, principal, and remaining balance
What is an amortization schedule?
500
Simple random sampling
A sampling method where every member has an equal chance of selection is called what?
500
Because it does not represent the population well
Why can a biased sample lead to poor conclusions?