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					        Bell Ringer – 4/30/08
1. In regard to banking, what
   is “earned interest”?
2. Explain the “Rule of 72”
3. Using the Rule of 72,
   calculate how long it would
   take to double a $300
   deposit to a savings
   account with 4% interest.
        2 Types of Investments
• Income Investment – the investor is paid in
  cash for owning the account or investment (ex:
  Savings Account)
• Growth Investment – person buys and holds
  an investment with the hope that it will increase
  in price, over time (ex: stocks, real estate)
                         Assignment
      Describe the following Income Investments
                 (info on pgs 35-26)
 Type of Income      Description           Risks
   Investment
Savings Account
U.S. Savings Bond
Certificate of Deposit
Money Market
Deposit Account
Money Market
Mutual Funds
Corporate &
Government Bonds

				
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