Show:
Simple Interest
Compound Interest
Mortgages
Stat Terms
Mixed Review
100
$60
Use I=Prt with P=$500, r=6%, t=2 years. Interest I=?
100
Original principal only
In simple interest, interest is calculated on what amount?
100
4%
If P=$1200 and I=$96 for 2 years, what is annual rate?
100
A = P + I
Total amount A in simple interest equals what formula?
100
False
A loan at 5% simple interest for 3 years doubles? True or false.
200
A = P(1 + r/n)^(nt)
What formula gives compound interest amount?
200
Increase
Compounding more frequently usually makes amount do what?
200
$1060
$1000 at 6% compounded annually for 1 year equals?
200
Compounds per year
In A=P(1+r/n)^(nt), what does n represent?
200
Compound interest
Compare simple vs compound over long time, which grows faster?
300
A long-term home loan
A mortgage is best described as what?
300
Taxes
A monthly mortgage payment typically includes PITI. What is T?
300
Payment breakdown and remaining balance
An amortization schedule shows what?
300
Interest
Early in a fixed-rate mortgage, most payment goes to what?
300
Total interest usually increases
What happens to total interest if loan term increases?
400
A population
A parameter describes what?
400
A sample
A statistic describes what?
400
Mean, median, or mode
Name one measure of center.
400
Discrete variable
A variable that is numeric and countable can be called what?
400
Sample is not representative
Sampling bias means what?
500
Compound interest
Which type of interest is usually used for credit cards?
500
Sampling bias
If a study surveys only morning students, what issue may occur?
500
Amortization
Loan principal decreases over time because of what process?
500
Unusual/high
A value 2 standard deviations above mean is considered relatively what?
500
APR and total cost
To compare loan options fairly, compare what besides payment?