Unit 9 Finance

Front

What is simple interest?

Back

Simple interest is calculated on the principal amount, or the original amount of money borrowed or invested, without compounding.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

What is the formula for compound interest?

Back

Compound Interest = Principal × (1 + Rate)^Time - Principal.

Front

What does 'compounded yearly' mean?

Back

It means that the interest is calculated and added to the principal once every year.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal, while compound interest is calculated on the principal plus any interest that has already been added.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is the Mean Absolute Deviation (MAD)?

Back

MAD is a measure of the dispersion of a set of data points around their mean, calculated as the average of the absolute differences from the mean.

Front

What is the first step in calculating the Mean Absolute Deviation?

Back

The first step is to find the mean of the data set.

Front

What is the second step in calculating the Mean Absolute Deviation?

Back

The second step is to find the distance each value is from the mean.

Front

What is the third step in calculating the Mean Absolute Deviation?

Back

The third step is to find the mean of the distances.