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Simple Interest
Compound
Mortgages
Stats Terms
Mixed Finance
100
I = P r t
Simple interest formula.
100
A = P(1+r/n)^(nt)
Compound amount formula (n times/year).
100
Amount borrowed / unpaid balance
In a mortgage, what is principal?
100
Entire group of interest
Define population.
100
$40
Simple interest on $500 at 4% for 2 years.
200
$30
I on $200 at 5% for 3 years.
200
12
For monthly compounding, n = ?
200
Interest rate/payment terms stay constant
Fixed-rate mortgage means what?
200
Subset of population observed
Define sample.
200
$120
Total A with simple interest $100,10%,2 yrs.
300
4 years
Find t if I=$60,P=$300,r=.05.
300
$121
A for $100 at 10% annually, 2 years.
300
Reduces amount financed
Down payment does what to loan principal?
300
Parameter describes population; statistic sample
Parameter vs statistic?
300
Compound interest
Which earns more: simple or compound at same positive rate/time?
400
0.5 year
Convert 6 months to years for I=Prt.
400
200(1+.12/12)^12
$200 at 12% monthly for 1 year: expression.
400
Paying loan through scheduled principal and interest
Amortization means what?
400
Labels vs numeric measurements
Categorical vs quantitative data?
400
Principal and interest
Monthly mortgage payment includes what two core parts?
500
$500
Solve P if I=$45,r=.03,t=3.
500
20
Effective growth periods for quarterly 5 years.
500
Value minus loan balance
What is equity in a home?
500
Selection bias
Bias from voluntary-response sample is called?
500
Sum of values divided by count
Mean definition.