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Simple Interest
Compound Interest
Mortgages
Statistics Terms
Mixed Applications
100
I = Prt
State the simple-interest formula using I, P, r, and t.
100
Interest earns interest.
What feature makes compound interest different from simple interest?
100
A loan used to buy real estate, secured by the property.
What is a mortgage?
100
Population
What term names the entire group a study wants to describe?
100
Compound interest by $2.50
Which earns more after 2 years: $1,000 at 5% simple interest or 5% compounded annually? By how much?
200
$100
Find the simple interest on $1,000 at 5% for 2 years.
200
$1,210
Find the value of $1,000 invested at 10% compounded annually for 2 years.
200
The original amount borrowed.
What does principal mean in a mortgage?
200
Sample
What term names a subset of the population?
200
Systematic sampling
Selecting every 10th student from an ordered list is what sampling method?
300
$2,800
Find the payoff on $2,500 at 4% simple interest for 3 years.
300
A = P(1 + r/n)^(nt)
State the compound-interest formula for n compounding periods per year.
300
$20,000
What is a 10% down payment on a $200,000 home?
300
5
Find the mean of 2, 5, and 8.
300
Interest
Name one cost a mortgage borrower pays in addition to principal.
400
3 years
A $6,000 loan earns $900 simple interest at 5% per year. Find the time.
400
$5,306.82
Find the value of $5,000 at 6% compounded quarterly for 1 year, rounded to cents.
400
360
How many monthly payments are in a 30-year mortgage?
400
9
Find the median of 3, 4, 9, 12, and 20.
400
$180,000
A home costs $225,000 and the buyer makes a 20% down payment. How much is borrowed?
500
$675
Find the simple interest on $12,000 at 7.5% for 9 months.
500
6.17%
What is the effective annual rate for 6% compounded monthly, rounded to two decimals?
500
$290,000
A borrower pays $1,500 per month for 30 years on a $250,000 loan. Ignoring taxes and insurance, what total interest is paid?
500
Convenience sampling
What type of sampling asks the easiest people to reach and can be biased?
500
Sampling variability and possible bias.
Why might a sample give a different result from the population?