1 of 8

1

The “Time Value” of Money

2 of 8

2

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

3 of 8

3

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years

4 of 8

4

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years

Who ends up with more money?

5 of 8

5

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years

Who ends up with more money?

Correct Answer: Brother A

6 of 8

6

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years

Correct Answer: Brother A

7 of 8

7

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years

8 of 8

8

The “Time Value” of Money

Brother A:

  • Starts at Age 22
  • Saves $40,000

​

Saves $100/week for 8 years

Leaves it to grow until 65.

Brother B:

  • Starts at Age 30
  • Saves $180,000

​

Saves $100/week for 36 years