1. 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. 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)

3. Assignment Describe the following Income Investments (info on pgs 35-26) Type of Income Investment DescriptionRisks Savings Account U.S. Savings Bond Certificate of Deposit Money Market Deposit Account Money Market Mutual Funds Corporate & Government Bonds