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Simple Interest
Compound Interest
Mortgages & Loans
Statistical Terms
Mixed Applications
100
I = Prt
This is the formula for simple interest.
100
$60
Find the interest on $500 at 6% for 2 years.
100
$1,380
Find the future value of $1,200 at 5% simple interest for 3 years.
100
5%
Solve for the annual rate if I = $90, P = $600, and t = 3 years.
100
$120
A $2,000 loan is charged 9% simple interest for 8 months. Find the interest.
200
previously earned interest
Compounding means earning interest on principal and on this.
200
$1,100
Find the amount for $1,000 at 10% compounded annually for 1 year.
200
$1,210
Find the amount for $1,000 at 10% compounded annually for 2 years.
200
compound interest
Over the same time and rate, which grows more: simple or compound interest?
200
about $530.84
Approximate the amount for $500 at 6% compounded monthly for 1 year.
300
principal
This is the amount borrowed before interest is added.
300
installment loan or amortized loan
A loan paid off with equal monthly payments is usually called this type of loan.
300
interest
In the early years of a mortgage, most of each payment usually goes to this.
300
annual percentage rate
APR stands for this.
300
decreases
If the loan term changes from 15 years to 30 years, the monthly payment usually does this.
400
population
The entire group a study wants information about.
400
sample
A subset of the population used in a study.
400
statistic
A numerical summary of a sample.
400
discrete
Data counted in whole-number values are called this kind of data.
400
bias or voluntary response bias
This problem can happen when data are collected only from people who choose to respond.
500
interest compounded monthly
Which earns more after 1 year on $1,000 at 8%: simple interest or interest compounded monthly?
500
sample
In a survey of 50 students, the 50 students are the what?
500
the annual percentage rate or yearly cost of borrowing
What does a quoted mortgage APR measure?
500
compound interest
A credit card balance grows because unpaid interest is added to principal. This is what kind of growth?
500
quantitative discrete
The number of classes each student takes is what type of variable: qualitative or quantitative? discrete or continuous?