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70-402: Interest is payment from a borrower to a lender of an amount above repayment of the amount borrowed, at a particular rate. Interest may also refer to: Interest In finance and economics , interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at
140-444: A time preference argument: it is preferable to receive a given good now rather than in the future. Accordingly, interest is compensation for the time the lender forgoes the benefit of spending the money. On the question of why interest rates are normally greater than zero, in 1770, French economist Anne-Robert-Jacques Turgot, Baron de Laune proposed the theory of fructification . By applying an opportunity cost argument, comparing
210-652: A "preoccupation with activities inside the church", as well as a lack of literature and programs on the subject. For these reasons, attempts to link faith and daily life "fizzled out". For Miller, "hindsight suggests that the institutional church and its leaders never fully embraced or understood lay ministry". Therefore, they stopped promoting the "ministry of the laity" concept to their members. Miller deems "Faith at Work" to be "a bona fide social movement and here to stay". Unlike earlier movements, business people (from evangelical and mainline Protestant denominations, Roman Catholics, Jews, Buddhists, and unaffiliated) initiated
280-558: A consequence of necessity (bad harvests, fire in a workplace) and, under those conditions, it was considered morally reproachable to charge interest. It was also considered morally dubious, since no goods were produced through the lending of money, and thus it should not be compensated, unlike other activities with direct physical output such as blacksmithing or farming. For the same reason, interest has often been looked down upon in Islamic civilization , with almost all scholars agreeing that
350-452: A group (called a circuit ) of preaching houses or churches. The lay preacher walked or rode on horseback in a prescribed circuit of the preaching places according to an agreed pattern and timing, and people came to the meetings. After the appointment of ministers and pastors, this lay preaching tradition continued with local preachers being appointed by individual churches, and in turn approved and invited by nearby churches, as an adjunct to
420-424: A growth factor according to the periodic interest, and then decreases by the amount paid p at the end of each period: where By repeated substitution, one obtains expressions for B n , which are linearly proportional to B 0 and p , and use of the formula for the partial sum of a geometric series results in A solution of this expression for p in terms of B 0 and B n reduces to To find
490-625: A number of important positions, including vergers , acolytes , lectors , intercessors , ushers . Acolytes include torch bearers, crucifers , thurifers , and boat bearers . Lectors read the lessons from the Bible appointed for the day (except for the Gospel reading, which is read by a Deacon), and may also lead the Prayers of the People. Some specialized lay ministries require special licensing by
560-404: A particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve , but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds
630-406: A percentage). Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e . In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate. Credit
700-508: A war that contradicted its optimism about Christianizing society. The Social Gospel was promulgated by the preaching, writing, and other efforts of clergy on behalf of the laity rather than by the laity themselves. In the early 1930s, the Social Gospel was described as "a preacher's gospel. It has not been the church's gospel. The laity have little share in it." Many were not aware what their clergy believed. Most scholars hold that
770-407: Is calculated only on the principal amount, or on that portion of the principal amount that remains. It excludes the effect of compounding . Simple interest can be applied over a time period other than a year, for example, every month. Simple interest is calculated according to the following formula: where For example, imagine that a credit card holder has an outstanding balance of $ 2500 and that
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#1732765151168840-470: Is depends on the abilities of the person: "landscaping, carpentry, writing, counseling, child care, sports, music, teaching, or just being a good listener". The relation within the laity as the "people of God" between those who are ordained priests and those not ordained is one of cooperation in three areas: (1) in the Liturgy , (2) Church administration, and (3) service (ministry) to others. In spite of
910-434: Is received by a lender, whereas profit is received by the owner of an asset , investment or enterprise . (Interest may be part or the whole of the profit on an investment , but the two concepts are distinct from each other from an accounting perspective.) The rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as
980-477: Is thought to have preceded the existence of coinage by several thousands of years. The first recorded instance of credit is a collection of old Sumerian documents from 3000 BC that show systematic use of credit to loan both grain and metals. The rise of interest as a concept is unknown, though its use in Sumeria argue that it was well established as a concept by 3000BC if not earlier, with historians believing that
1050-512: The Anglican tradition, all baptized persons are expected to minister in Christ's name. The orders of ministry are thus laypersons, licensed lay ministers (or readers), deacons, priests, and bishops. The ministry of the laity is "to represent Christ and his Church; to bear witness to him wherever they may be; and, according to the gifts given them, to carry on Christ's work of reconciliation in
1120-634: The Auburn Theological Seminary wrote a retrospective of the Ministry of the Laity era based on research and survey. His research participants were women and men in equal numbers, aged 20 to 60, from six denominations. Reber found that "all were really interested to link faith with their daily life and work". However, in his survey, Reber found that little had been done in the six denominations to enable laity to make this link. He observed
1190-464: The Catholic and the Anglican churches, anyone who is not ordained as a deacon , priest , or bishop is referred to as a layman or a laywoman. Non-ordained preachers or readers are considered part of the laity. The Second Vatican Council (1962–1965) devoted its decree on the apostolate of the laity Apostolicam actuositatem and chapter IV of its dogmatic constitution Lumen gentium to
1260-667: The Five Precepts (or the Eight Precepts during Uposatha Days ) as discipline for ethical conduct. Laymen and laywomen are two of the "Four-fold Assembly". The Buddha referred to his disciples as the "Four-fold Assembly" – the gatherings of 'bhikkhū' (monks), 'bhikkhunī' (nuns), 'upasakā' (laymen), and 'upasikā' (laywomen). In the Mahāparinibbāna Sutta , the Buddha famously said that "He would not pass away until
1330-852: The General Convention includes four lay persons from each diocese in the House of Deputies, and each diocesan convention includes lay delegates from the parishes. On the local parish level, lay persons are elected to a church council called a vestry which manages church finances and elects the parish rector . Parish musicians, bookkeepers, administrative assistants, sextons , sacristans , etc., are all roles normally filled by lay persons. At higher levels, diocesan and national offices rely on lay persons in many important areas of responsibility. Often specialized ministries as campus ministers, youth ministers, or hospital chaplains are performed by lay persons. Lay persons serve in worship services in
1400-453: The Laws of Eshnunna instituted a legal interest rate, specifically on deposits of dowry . Early Muslims called this riba , translated today as the charging of interest. The First Council of Nicaea , in 325, forbade clergy from engaging in usury which was defined as lending on interest above 1 percent per month (12.7% AER ). Ninth-century ecumenical councils applied this regulation to
1470-525: The Methodist Church of Great Britain , a "worship leader" is a trained lay person appointed by a Church Council to "take a leading and significant role in the conduct of worship within the life of a Local Church". Presbyterians do not use the term "lay". Thus the Church of Scotland has "Readers", men and women set apart by presbyteries to conduct public worship. This arises out of the belief in
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#17327651511681540-410: The clergy , usually including any non- ordained members of religious orders , e.g. a nun or a lay brother . In both religious and wider secular usage, a layperson (also layman or laywoman ) is a person who is not qualified in a given profession or does not have specific knowledge of a certain subject. The phrase " layman's terms " is used to refer to plain language that is understandable to
1610-533: The laity . Catholic Church opposition to interest hardened in the era of the Scholastics , when even defending it was considered a heresy . St. Thomas Aquinas , the leading theologian of the Catholic Church , argued that the charging of interest is wrong because it amounts to " double charging ", charging for both the thing and the use of the thing. In the medieval economy , loans were entirely
1680-655: The priesthood of all believers . Ministers are officially 'teaching elders' alongside the 'ruling elders' of the Kirk Session and have equivalent status, regardless of any other office. In the Church of Scotland, as the Established church in Scotland, this gives ruling elders in congregations the same status as Queen's chaplains, professors of theology and other highly qualified ministers. All are humble servants of
1750-657: The "Four-fold Assembly" is well-established in the learning and practice of Dhamma, and proficient in propagating His Sublime Teachings." The movement to help laity apply their faith to daily life has been divided into three eras by David W. Miller in God at Work . The Social Gospel sought to reform society by the application of biblical principles. Its major proponents were all clergy: Washington Gladden , Charles Monroe Sheldon , and Walter Rauschenbusch . They were better in diagnosing society's ills than finding remedies. The Social Gospel reached its peak just prior to World War I,
1820-504: The "everyday secular world". The Orthodox Church's assertion that all Christians are "appointed" as ministers is based on Scripture (1 Peter 2:9 ) and the Church Fathers . The ministry of the laity complements the ministry of the priest in their daily lives in their families, their communities, their work: "in whatever circumstances they find themselves". The most important "lay ministry" can be done anonymously. What one's ministry
1890-408: The $ 6 per year after only 6 months ( time preference ), and so has the opportunity to reinvest the first $ 3 coupon payment after the first 6 months, and earn additional interest. For example, suppose an investor buys $ 10,000 par value of a US dollar bond, which pays coupons twice a year, and that the bond's simple annual coupon rate is 6 percent per year. This means that every 6 months, the issuer pays
1960-711: The Anglican and Episcopal churches is lay reader . In the Uniting Church in Australia , that was constituted in part from the Methodist Church, persons can be appointed by the congregation as a lay preacher or by the regional presbytery to preside at Communion . The Methodist Book of Discipline describes the "Ministry of the Laity" in their daily lives as being "Christ-like examples of everyday living" and "sharing their own faith experiences". In
2030-458: The Church," discounting their "workaday" ministry. From the start of his papacy Francis called for structural change in the Church which will foster the responsibility of the laity now held "at the edge of the decisions" by "excessive clericalism", and to "create still broader opportunities for a more incisive female presence in the Church". The "missionary transformation of the Church" is seen by some as "the goal of this pontificate", with all
2100-596: The Qur'an explicitly forbids charging interest. Medieval jurists developed several financial instruments to encourage responsible lending and circumvent prohibitions on usury, such as the Contractum trinius . In the Renaissance era, greater mobility of people facilitated an increase in commerce and the appearance of appropriate conditions for entrepreneurs to start new, lucrative businesses. Given that borrowed money
2170-563: The Social Gospel movement peaked between 1900 and World War I. There is less agreement about when and why the decline happened. The Ministry of the Laity in daily life premise was stated by Howard Grimes in his The Rebirth of the Laity . "Although it is not alone through our daily work that we exercise our call, there is a special sense in which we do so in that area, since so much of our lives are spent in our occupations as lawyer, doctor, manual laborer, skilled craftsmen, housewife, domestic servant, student, serviceman." In 1988, Dean Reber of
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2240-599: The United Methodist Church (more commonly in the United States) attend a series of training sessions. These training sessions prepare the individual to become a leader within the church. All individuals who are full members of the church are laity, but some go on to become Lay Speakers. Some preachers get their start as Lay Speakers. Local preachers lead the majority of church services in the Methodist Church of Great Britain . The comparable term in
2310-476: The World. Initiatives: In Support of Christians in the World (January 2015) rejoiced that "50 Years since Vatican II" the increased lay ministry in parishes has "brought fresh vitality". However, the newsletter lamented "the neglect of formation for the lay apostolate in the world". Pope Francis is quoted as confirming this lament. Priests tend to "clericalize the laity" and view their ministry as only "within
2380-458: The age of 12 who are judged by church leaders to be in good standing are ordained to an office of the priesthood and hold various positions in the church. Most church positions at the local level are unpaid, but the LDS church helps with the living expenses of top church leaders and some others (e.g. mission presidents ). Many top church leaders serve in these positions after long secular careers. With
2450-430: The balances instead of being subtracted, and the formula for the payment is the negative of the one above. These formulas are only approximate since actual loan balances are affected by rounding. To avoid an underpayment at the end of the loan, the payment must be rounded up to the next cent. Laity In religious organizations , the laity ( / ˈ l eɪ ə t i / ) consists of all members who are not part of
2520-566: The baptized becoming "missionary disciples", The Orthodox Church in America 's web site has eleven articles regarding its Theology of Lay Ministries. The term "lay ministries" refers to all the "people of God" (from the Greek laos tou Theou ) including the ordained. Thus, every Christian has a vocation to ministry. A minority are called to ecclesiastical ministries. The majority are called to serve God and their fellow human beings in some way in
2590-537: The bishop: the ministries which require a license vary from province to province. In the Episcopal Church, there are six specialized lay ministries requiring a license: Pastoral Leader, Worship Leader, Preacher, Eucharistic Minister, Eucharistic Visitor, and Catechist. An early tradition of preaching in the Methodist churches was for a lay preacher to be appointed to lead services of worship and preach in
2660-403: The church's teaching about the ministry of the laity in the world, the church gives more recognition to ministry within the institutional church. The "daily ministry" of the laity in their work, in their homes, and in their recreation remains hidden. Priests may intend to support their parishioners' daily ministry, but their priority tends to be recruiting volunteers for the church's programs. In
2730-492: The church. The Declaration was signed by forty-seven clergy, religious, and laity that included men and women in many occupations, and it served as the charter for the National Center for the Laity (NCL). The NCL helps lay Catholics respond to their call to change the world through their daily activities and regular responsibilities, and it publishes a monthly online newsletter Initiatives: In Support of Christians in
2800-415: The concept in its modern sense may have arisen from the lease of animal or seeds for productive purposes. The argument that acquired seeds and animals could reproduce themselves was used to justify interest, but ancient Jewish religious prohibitions against usury (נשך NeSheKh ) represented a "different view". The first written evidence of compound interest dates roughly 2400 BC. The annual interest rate
2870-474: The economy. Some countries, including Iran, Sudan, and Pakistan, have taken steps to eradicate interest from their financial systems. Rather than charging interest, the interest-free lender shares the risk by investing as a partner in profit loss sharing scheme, because predetermined loan repayment as interest is prohibited, as well as making money out of money is unacceptable. All financial transactions must be asset-backed and must not charge any interest or fee for
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2940-524: The everyday person, as opposed to specialised terminology understood only by a professional. Terms such as lay priest , lay clergy and lay nun were once used in certain Buddhist cultures, especially Japanese, to indicate ordained persons who continued to live in the wider community instead of retiring to a monastery . Some Christian churches utilise lay preachers , who preach but are not clergy. The Church of Jesus Christ of Latter-day Saints uses
3010-784: The exception of members of the Quorum of the Twelve Apostles , the First Quorum of the Seventy who are at the top of the church hierarchy, and patriarchs , all leadership positions are temporary. In Buddhism , a lay Buddhist is known as an upasakā (masc.) or upasikā (fem.). Buddhist laypeople take refuge in the Triple Gem the Buddha , Dhamma (His Teachings ), and Sangha (His community of Noble Disciples ) and accept
3080-410: The faith at work movement and support it because they want to connect their work and their faith. Management training often includes a faith dimension. Examples of various kinds of faith at work initiatives follow: Some faith at work initiatives focus not on work itself but on the workplace as a "mission field". In this "business as missions" concept, faith at work means "reaching people for Christ in
3150-422: The frequency of compounding is increased without limit, this sequence can be modeled as follows: where n is the number of times the interest is to be compounded in a year. In economics, the rate of interest is the price of credit , and it plays the role of the cost of capital . In a free market economy, interest rates are subject to the law of supply and demand of the money supply , and one explanation of
3220-403: The holder of the bond a coupon of 3 dollars per 100 dollars par value. At the end of 6 months, the issuer pays the holder: Assuming the market price of the bond is 100, so it is trading at par value, suppose further that the holder immediately reinvests the coupon by spending it on another $ 300 par value of the bond. In total, the investor therefore now holds: and so earns a coupon at the end of
3290-540: The laity in a sense narrower than that which is normal in the Catholic Church . The normal definition of laity is that given in the Code of Canon Law : By divine institution, there are among the Christian faithful in the Church sacred ministers who in law are also called clerics; the other members of the Christian faithful are called lay persons. There are members of the Christian faithful from both these groups who, through
3360-429: The laity is as follows: The term laity is here understood to mean all the faithful except those in holy orders and those in the state of religious life specially approved by the Church. These faithful are by baptism made one body with Christ and are constituted among the People of God; they are in their own way made sharers in the priestly, prophetical, and kingly functions of Christ; and they carry out for their own part
3430-515: The laity should say "we are the Church," in the same way that the saints said that "Christ lives in me." Lay involvement takes diverse forms, including participation in the life of the parish, confraternities , lay apostolates , secular institutes , and lay ecclesial movements . There are also lay ecclesiastical ministries , and where there is a priest shortage , lay people have to take on some functions previously performed by priests. In December 1977, "A Chicago Declaration of Christian Concern"
3500-478: The late 19th century, Swedish economist Knut Wicksell in his 1898 Interest and Prices elaborated a comprehensive theory of economic crises based upon a distinction between natural and nominal interest rates . In the 1930s, Wicksell's approach was refined by Bertil Ohlin and Dennis Robertson and became known as the loanable funds theory. Other notable interest rate theories of the period are those of Irving Fisher and John Maynard Keynes . Simple interest
3570-441: The loan rate with the rate of return on agricultural land, and a mathematical argument, applying the formula for the value of a perpetuity to a plantation, he argued that the land value would rise without limit, as the interest rate approached zero. For the land value to remain positive and finite keeps the interest rate above zero. Adam Smith , Carl Menger , and Frédéric Bastiat also propounded theories of interest rates. In
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#17327651511683640-494: The minister or during their planned absences. The United Methodist Church recognizes two types of lay ministries. One is a "lay servant ministry" of (a) assisting or leading local church meetings and worship or of (b) serving as lay missioners to begin new work within the church that requires special training. The other type is the "ministry of the laity" in their daily lives. In addition to being appointed by members of their local churches, local and certified lay speakers of
3710-528: The mission of the whole Christian people in the Church and in the world. In this narrower sense, the Council taught that the laity's specific character is secularity: they are Christians who live the life of Christ in the world. Their role is to sanctify the created world by directing it to become more Christian in its structures and systems: "the laity, by their very vocation, seek the kingdom of God by engaging in temporal affairs and by ordering them according to
3780-417: The nearest cent.) Compound interest includes interest earned on the interest that was previously accumulated. Compare, for example, a bond paying 6 percent semiannually (that is, coupons of 3 percent twice a year) with a certificate of deposit ( GIC ) that pays 6 percent interest once a year. The total interest payment is $ 6 per $ 100 par value in both cases, but the holder of the semiannual bond receives half
3850-445: The next 6 months of: Assuming the bond remains priced at par, the investor accumulates at the end of a full 12 months a total value of: and the investor earned in total: The formula for the annual equivalent compound interest rate is: where For example, in the case of a 6% simple annual rate, the annual equivalent compound rate is: The outstanding balance B n of a loan after n regular payments increases each period by
3920-406: The payment if the loan is to be finished in n payments, one sets B n = 0. The PMT function found in spreadsheet programs can be used to calculate the monthly payment of a loan: An interest-only payment on the current balance would be The total interest, I T , paid on the loan is The formulas for a regular savings program are similar, but the payments are added to
3990-554: The people in the congregation and parish. Ministers are simply men and women whose gift is for their role in teaching and possibly pastoral work. They are thus selected for advanced theological education. All elders (teaching and ruling) in meetings of Session, Presbytery, or Assembly are subject to the Moderator, who may or may not be a minister but is always an elder. Many leaders in the Church of Jesus Christ of Latter-day Saints are lay ministers. Essentially all male members above
4060-418: The plan of God". The laity are full members of the Church, fully share in Church's purpose of sanctification, of "inner union of men with God", acting with freedom and personal responsibility and not as mere agents of the hierarchy. Due to their baptism , they are members of God's family, the Church, and they grow in intimate union with God, "in" and "by means" of the world. It is not a matter of departing from
4130-516: The profession of the evangelical counsels by means of vows or other sacred bonds recognized and sanctioned by the Church, are consecrated to God in their own special way and contribute to the salvific mission of the Church; although their state does not belong to the hierarchical structure of the Church, it nevertheless belongs to its life and holiness. The narrower sense in which the Second Vatican Council gave instruction concerning
4200-457: The service of lending. It is thought that Jacob Bernoulli discovered the mathematical constant e by studying a question about compound interest . He realized that if an account that starts with $ 1.00 and pays say 100% interest per year, at the end of the year, the value is $ 2.00; but if the interest is computed and added twice in the year, the $ 1 is multiplied by 1.5 twice, yielding $ 1.00×1.5 = $ 2.25. Bernoulli noticed that if
4270-490: The simple annual interest rate is 12.99% per annum , applied monthly, so the frequency of applying interest is 12 per year. Over one month, interest is due (rounded to the nearest cent). Simple interest applied over 3 months would be If the card holder pays off only interest at the end of each of the 3 months, the total amount of interest paid would be which is the simple interest applied over 3 months, as calculated above. (The one cent difference arises due to rounding to
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#17327651511684340-512: The structures of the church. There are elected lay representatives on the various governing bodies of churches in the Anglican communion. In the Church of England , these governing bodies range from a local parochial church council , through Deanery Synods and Diocesan Synods . At the topmost level, the General Synod includes a house of Laity. Likewise, in the Episcopal Church in the USA,
4410-442: The tendency of interest rates to be generally greater than zero is the scarcity of loanable funds . Over centuries, various schools of thought have developed explanations of interest and interest rates. The School of Salamanca justified paying interest in terms of the benefit to the borrower, and interest received by the lender in terms of a premium for the risk of default . In the sixteenth century, Martín de Azpilcueta applied
4480-501: The term lay priesthood to emphasise that its local congregational leaders are unpaid. The word laity means "common people" and comes from the Greek : λαϊκός , romanized : laikos , meaning "of the people", from λαός , laos , meaning "people" at large. The word lay (part of layperson , etc.) derives from the Greek word via Anglo-French lai , from Late Latin laicus . In many Christian denominations , including
4550-432: The total costs. For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower. Interest differs from profit , in that interest
4620-538: The world as the monks and the nuns do that they sanctify themselves; it is precisely through the material world sanctified by the coming of the God made flesh, i.e. made material, that they reach God. Doctors, mothers of a family, farmers, bank tellers, drivers, by doing their jobs in the world with a Christian spirit are already extending the Kingdom of God. According to the repeated statements of Popes and lay Catholic leaders,
4690-443: The world; and to take their place in the life, worship, and governance of the Church". Much of the ministry of the laity thus takes place outside official church structures in homes, workplaces, schools, and elsewhere. It is "through their continuous participation in political, economic, educational, and kinship institutions" that the laity "powerfully influence the character of these institutions". Laymen also play important roles in
4760-467: Was no longer strictly for consumption but for production as well, interest was no longer viewed in the same manner. The first attempt to control interest rates through manipulation of the money supply was made by the Banque de France in 1847. The latter half of the 20th century saw the rise of interest-free Islamic banking and finance , a movement that applies Islamic law to financial institutions and
4830-559: Was published. The declaration looked back a decade to the Vatican Council II with appreciation for its "compelling vision of lay Christians in society." As the Declaration interpreted it, the Council viewed the laity's "special vocation" as being the "leaven" for the "sanctification of the world" in their "secular professions and occupations". However, lamented the Declaration, the council's vision has "all but vanished" from
4900-472: Was roughly 20%. Compound interest was necessary for the development of agriculture and important for urbanization. While the traditional Middle Eastern views on interest were the result of the urbanized, economically developed character of the societies that produced them, the new Jewish prohibition on interest showed a pastoral, tribal influence. In the early 2nd millennium BC, since silver used in exchange for livestock or grain could not multiply of its own,
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