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Simple Interest
Compound Interest
Mortgages & Loans
Sampling & Data
Basic Statistical Terms
100
I = P r t
State the simple interest formula.
100
$120
Find simple interest on $800 at 5% for 3 years.
100
$2,240
Find the total future value for a simple-interest loan with P=$2,000, r=0.06, t=2.
100
3 years
If I=$90, P=$600, r=0.05, solve for t (years).
100
Linearly
Simple interest grows linearly or exponentially over time?
100
A = P(1 + r/n)^(nt)
State the compound interest future value formula.
100
$1,210
Compute A for P=$1,000, r=10%, compounded annually for 2 years.
100
Compound interest
At the same rate and time, which earns more: simple or compound interest?
100
Number of compounding periods per year
What does n represent in A = P(1 + r/n)^(nt)?
100
The actual annual % increase after compounding
What is effective annual yield (EAY) in plain language?
100
Interest and principal
In a mortgage payment, what two pieces form each payment?
100
Gradually paying off a loan with scheduled payments
What does “amortization” mean?
100
Decrease
If your monthly payment is fixed, does the interest portion usually increase or decrease over time?
100
15 years or 30 years
Name one common mortgage term length.
100
Property taxes and insurance
What is escrow commonly used for in mortgage payments?
100
Population
Population or sample: all students at NBCC?
100
Sample
Population or sample: 50 students surveyed from NBCC?
100
Simple random sampling
Which sampling method gives every individual an equal chance?
100
Sampling bias / undercoverage
Bias alert: surveying only students in one math class introduces what issue?
100
Values differ/spread out rather than being identical
Variation in data means what?
100
A characteristic that can take different values
What is a variable in statistics?
100
Qualitative (categorical)
Qualitative or quantitative: students’ major?
100
Quantitative
Qualitative or quantitative: number of credit hours?
100
Discrete
Discrete or continuous: number of siblings?
100
Continuous
Discrete or continuous: height in inches?