{"id":1097,"date":"2017-01-11T23:51:32","date_gmt":"2017-01-11T23:51:32","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/waymakermath4libarts\/?post_type=chapter&#038;p=1097"},"modified":"2017-04-04T23:22:52","modified_gmt":"2017-04-04T23:22:52","slug":"introduction-accounts-that-gain-interest","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/chapter\/introduction-accounts-that-gain-interest\/","title":{"raw":"Introduction: Annuities and Loans","rendered":"Introduction: Annuities and Loans"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\nThe learning outcomes for this section include:\r\n<ul>\r\n \t<li>Calculate the balance on an annuity after a specific amount of time<\/li>\r\n \t<li>Discern between compound interest, annuity, and payout annuity given a finance scenario<\/li>\r\n \t<li>Use the loan formula to calculate loan payments, loan balance, or interest accrued on a loan<\/li>\r\n \t<li>Determine which equation to use for a given scenario<\/li>\r\n \t<li>Solve a financial application for time<\/li>\r\n<\/ul>\r\n<\/div>\r\nFor most of us, we aren\u2019t able to put a large sum of money in the bank today. Instead, we save for the future by depositing a smaller amount of money from each paycheck into the bank. In this section, we will explore the math behind specific kinds of accounts that gain interest over time, like retirement accounts. We will also explore how mortgages and car loans, called installment loans, are calculated.\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1141\/2017\/02\/03191150\/430367107_5671e4c5a1_b.jpg\"><img class=\"wp-image-1341 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1141\/2017\/02\/03191150\/430367107_5671e4c5a1_b-300x161.jpg\" alt=\"\" width=\"520\" height=\"279\" \/><\/a>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<p>The learning outcomes for this section include:<\/p>\n<ul>\n<li>Calculate the balance on an annuity after a specific amount of time<\/li>\n<li>Discern between compound interest, annuity, and payout annuity given a finance scenario<\/li>\n<li>Use the loan formula to calculate loan payments, loan balance, or interest accrued on a loan<\/li>\n<li>Determine which equation to use for a given scenario<\/li>\n<li>Solve a financial application for time<\/li>\n<\/ul>\n<\/div>\n<p>For most of us, we aren\u2019t able to put a large sum of money in the bank today. Instead, we save for the future by depositing a smaller amount of money from each paycheck into the bank. In this section, we will explore the math behind specific kinds of accounts that gain interest over time, like retirement accounts. We will also explore how mortgages and car loans, called installment loans, are calculated.<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1141\/2017\/02\/03191150\/430367107_5671e4c5a1_b.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1341 aligncenter\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1141\/2017\/02\/03191150\/430367107_5671e4c5a1_b-300x161.jpg\" alt=\"\" width=\"520\" height=\"279\" \/><\/a><\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-1097\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Outcomes and Introduction. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Bad Credit? We can help!. <strong>Authored by<\/strong>: BookMama. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/myloonyland\/430367107\">https:\/\/www.flickr.com\/photos\/myloonyland\/430367107<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em>. <strong>License Terms<\/strong>: 2.0<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":21,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Outcomes and Introduction\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Bad Credit? We can help!\",\"author\":\"BookMama\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/myloonyland\/430367107\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"2.0\"}]","CANDELA_OUTCOMES_GUID":"525fa5b3-d53f-4b8e-9546-66d41208b6c4","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-1097","chapter","type-chapter","status-publish","hentry"],"part":377,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapters\/1097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":6,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapters\/1097\/revisions"}],"predecessor-version":[{"id":1375,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapters\/1097\/revisions\/1375"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/parts\/377"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapters\/1097\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/wp\/v2\/media?parent=1097"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/pressbooks\/v2\/chapter-type?post=1097"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/wp\/v2\/contributor?post=1097"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-mathforliberalarts\/wp-json\/wp\/v2\/license?post=1097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}