Students need to be able to work in the various contexts relating loans and investment (e.g-: payment on a housing loan, a car loan, an annuity investment e.t.c.
Loan is where a lump sum is borrowed from a bank in order to make a large payment eg:- a house, car and others. This loan amounts is repaid in smaller monthly amounts that have interest added to them. This interest is calculated at a set rate on the remaining money owed.
Investment is where money is paid into a fund which then gains interest and increases the value of the original money to the benefit of the investor.