Tim and Tom are interesting characters. Their story has been told millions of times and has appeared many times in print. Some people think there is an important moral to their story. Tim and Tom are twins. They both went to work at age 20 with identical jobs, identical salaries, and at the end of each year, they received identical bonuses of $2000. However, they were not identical in all aspects. Early in life, Tim was conservative and was concerned about his future. Each year he invested his $2000 bonus in a savings program earning 9% compounded annually. Tim decided at age 30 to have some fun in life and he began spending his $2000 bonus on vacations in the Bahamas. This continued until he was 65 years old. Tom, on the other hand, believed in his youth that life was too short to be concerned about saving for the future. For 10 years, he spent his $2000 bonuses on vacations in the Bahamas. At age 30, he began investing his $2000 bonus in a savings program earning 9% compounded annually. This continued until he was 65 years old. Through the years, the brothers became separated. However, they were joyfully reunited at age 65 a family reunion and exchanged many stories of the events in their lives, Eventually, the conversation got around to retirement plans and savings programs. Each brother was proud of his savings and showed the other a spreadsheet describing his savings activities, terms, and accumulations. year 1 2 3 4 56789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Deposits by Tim $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 Tim'sBalance $ 2180.00 $4556.20 Deposits by Tom Tom's Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 $2000.00 | $2000.00 $2000.00 $2000.00 $2000.00 $0 $0 $0 $0 $0 $0 $0 4444 2. At age 65, (at the end of year 45) a. How much money had each accumulated? b. How much more did Tim have than Tom? c. How much money had each contributed to his savings program? d. How many vacations did each take? $2000.00 $2000.00 $2000.00 $2000.00 Tim Tom 3. Examine the relative merits of Tim and Tom's investment programs. Write some advantages of each. 4. Financial experts think there is a moral to the story of Tim and Tom. What is it?