| A | B |
|---|
| Time Value of Money | Money will increase in value over time, when deposited in an interest-bearing account, due to compound interest |
| Compound Interest | Calculating interest as part of the principal |
| APR | Annual Percentage Rate |
| Factors affecting growth of money | Interest Rate, Principal, Time |
| Savings Accounts | A bank account which pays interest on deposits |
| Certificates of Deposit | Offered by banks - requires deposit for a set time period |
| U.S. Savings Bonds | Backed by the government- formal agreement for a set time period |
| Mutual Funds | Pools money from several investors and diversifies investments |
| Stocks | Represent ownership in a company - high risk investment |
| Rule of 72 | Calculates the time it takes to double your money |
