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Simple Interest
Compound Interest
Mortgages
Statistical Terms
Mixed Review
100
Principal
In the simple interest formula I = Prt, what does P represent?
100
Compound interest
What kind of interest earns interest on previously earned interest?
100
A loan used to purchase a home, secured by the property
What is a mortgage?
100
The entire group of interest
What is a population in statistics?
100
A parameter
Data from a sample are used to estimate what kind of measure of a population?
200
$100
Find the simple interest on $1,000 at 5% for 2 years.
200
$1,100
Find the value of $1,000 at 10% compounded annually for 1 year.
200
360 payments
A 30-year mortgage paid monthly has how many payments?
200
A subset of the population
What is a sample?
200
$48
Find the simple interest on $800 at 6% for 1 year.
300
$620
Find the future value with simple interest: P = $500, r = 8%, t = 3 years.
300
$1,102.50
Find the value of $1,000 at 5% compounded annually for 2 years.
300
How each payment is split between interest and principal and the remaining balance
What does an amortization schedule show?
300
A numerical summary of a population
What is a parameter?
300
$2,060
Find the value of $2,000 at 3% compounded annually for 1 year.
400
5%
If $90 of simple interest is earned on $600 in 3 years, what is the annual rate?
400
Monthly compounding
With the same nominal rate, which usually earns more: annual compounding or monthly compounding?
400
Lowers it
On a fixed-rate mortgage, a bigger down payment usually does what to the monthly payment?
400
A numerical summary of a sample
What is a statistic?
400
It decreases
Over time, what happens to the unpaid principal on a standard amortized mortgage if payments are made as scheduled?
500
$2,480
Find the total amount repaid on a simple-interest loan with P = $2,000, r = 6%, t = 4 years.
500
The number of compounding periods per year
In the compound interest formula A = P(1 + r/n)^(nt), what does n stand for?
500
Interest (and possibly escrow if included)
What part of a monthly mortgage payment is not principal?
500
Quantitative discrete
Classify the variable “number of siblings.”
500
Sample: 50 students; Population: all 2,000 students
In a survey of 50 students chosen from 2,000 students, identify the sample and the population.