Timmy and Tommy are twins. Fraternal twins, who always referred to themselves as the Triple T Twins because they spent their teens in Tennessee City, Tennessee. Being twins, they like to do things in tandem. They grew up playing tennis and table tennis. They ran track in high school and as Tennessee State Tigers. Eventually they tired of track and turned to tether-ball for training.

Time passed for Timmy and Tommy and while their interests remained the same, their investment tastes turned out to be terribly different. You see, at age twenty-two Timmy and Tommy both took top jobs leading teams at Target.

Timmy, having taken personal investing at University, agreed with his partner La-Tia that they should invest $1,200 of their salaries each year. (They thought they could part with $100 per month.) They stuck to this tactic for twenty years. At that point they decided they wanted to take more trips and stopped investing so they could go to Tahiti every other year. However, the total stayed in the account and accumulated interest for twenty more years.

Tommy thought less about the future and took the same $1,200 and took a trip to Tahiti every other year. After ten years, he realized he might need some dough when he retired, tapped his temple and set his mind to investing. He invested $1,200 per year for the next thirty years.

(f) How much did Tommy invest?

(g) How many times did Timmy and La-Tia go to Tahiti?

(h) How many times did Tommy go to Tahiti?

(i) Use the formulas covered in class to verify the amount that Timmy saved.

(j) Use the formulas covered in class to verify the amount that Tommy saved.

2. Now pretend you invest like Timmy starting today. (Just $100 per month.) Look up on the internet the average interest rate for the S&P 500.

1. (a) How much would you have in 30 years?

2. (b) How old will you be?

3. (c) If your “future kids” were going to start college in 30 years, how would this impact their college experience?