Masayako, I don’t know where you learned math, but your methods of calculation are way off. You can’t take the sum of two years of expenses for your investment starting point. It should be the initial cost of the phone, $650 with tax, plus any premium in the service plan, which in this case is $20. Remember, you should fairly compare it with another phone, not the stock market! And any other phone in the same category as an iPhone, such as a Blackberry, is also going to cost you something upfront, plus a premium for the service plan. So what is the net difference? Probably a couple hundred dollars. Hardly worth planning your financial future on it. So go back to school. And buy the way, phones are not “investments”, rather tools we use to communicate and have fun. It’s OK to have some fun, isn’t it?
