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Simple Interest
Compound Interest
Mortgages
Stats Vocabulary
Mixed Applications
100
principal
This is the original amount invested or borrowed.
100
compound interest
Simple interest is based only on principal; this kind of interest is based on principal plus previously earned interest.
100
a home or real estate
A mortgage is a loan used to buy this type of property.
100
population
The entire group of interest in a study.
100
$40
Find 5% simple interest on $800 for 1 year.
200
$60
Find the simple interest on $500 at 6% for 2 years.
200
$1100
Find the amount for $1000 at 10% compounded annually for 1 year.
200
interest
Early mortgage payments mostly go toward this.
200
discrete data
Quantitative data that are counted in whole numbers.
200
$106.09
Find the amount for $100 at 3% compounded annually for 2 years.
300
$1380
Find the future value of $1200 at 5% simple interest for 3 years.
300
$540.80
Find the amount for $500 at 4% compounded annually for 2 years.
300
total interest paid
A longer mortgage term lowers the monthly payment but increases this overall.
300
statistic
A numerical summary computed from a sample.
300
remaining principal
On a loan, the unpaid balance is called this.
400
4%
A loan earns $80 simple interest on $1000 for 2 years. What is the rate?
400
number of compounding periods per year
In A = P(1 + r/n)^(nt), what does n represent?
400
the loan term in years
In a 30-year mortgage, the 30 represents this.
400
sample
A subset of the population used to represent the whole.
400
50
A college has 2000 students. If 50 are surveyed, what is the sample size?
500
3 years
At 5% simple interest, how long does it take $2000 to earn $300 in interest?
500
8% compounded annually
Which grows more after 3 years on the same principal and rate: 8% simple interest or 8% compounded annually?
500
reduces total interest and shortens the loan term
Making extra principal payments generally has this effect.
500
voluntary response bias or self-selection bias
Bias that occurs when only people who want to respond choose to participate.
500
about $22.03 more
Compare $2000 at 6% for 3 years: compound annually earns about this much more than simple interest.