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Simple Interest
Compound Interest
Mortgages
Statistical Terms
Mixed Review
100
$40
Use I=Prt. Find the interest on $500 at 4% for 2 years.
100
the number of compounding periods per year
In A=P(1+r/n)^(nt), what does n represent?
100
interest
A mortgage payment usually includes principal and this additional cost for borrowing.
100
population
The entire group you want to study is called the...
100
compound interest
If a bank quotes 6% interest compounded monthly, is this simple or compound interest?
200
$920
What is the maturity value of $800 at 5% simple interest for 3 years?
200
$1,102.50
Find the amount for $1,000 at 5% compounded annually for 2 years.
200
the process of paying off a loan through regular payments over time
What is amortization?
200
sample
A subset of the population that is actually observed is the...
200
quantitative
A survey of 100 students asks how many hours they sleep. Is sleep time qualitative or quantitative?
300
annual interest rate in decimal form
In simple interest, what does r stand for?
300
compound interest
Which grows more over time at the same stated annual rate: simple or compound interest?
300
interest
In the early years of a typical fixed-rate mortgage, more of each payment goes to principal or interest?
300
statistic
A number that describes a sample is a...
300
it may not represent the population
Name one reason a biased sample can lead to weak conclusions.
400
3 years
How long will it take $1,200 at 6% simple interest to earn $216 interest?
400
$2,812.16
$2,500 earns 4% compounded annually for 3 years. About how much is in the account?
400
it decreases
A borrower makes a larger down payment. What usually happens to the monthly mortgage payment?
400
parameter
A number that describes a population is a...
400
it decreases
A $150,000 mortgage with the same rate is extended from 15 years to 30 years. What usually happens to the monthly payment?
500
$225
A $2,000 loan at 7.5% simple interest runs for 18 months. How much interest is owed?
500
because previously earned interest also earns new interest
Why is compound interest called interest on interest?
500
property taxes or homeowners insurance
Name one item often included in escrow with a mortgage payment.
500
convenience sample
A sample chosen because it is easy to reach is called a...
500
a statistic describes a sample; a parameter describes a population
What is the difference between a statistic and a parameter?