Hidden Fees Alert: Introducing the $7,000 3G iPhone - TheStreet

The 3G iPhone (AAPL) hits stores this Friday at 8 a.m., but don’t rush to secure a place in line just yet. You might want to crunch some numbers first.

Sure, the $199 price tag seems appealing for this newer and sleeker model. But add up the service costs over two years and you’ll realize you’re actually paying about $2,000, more than if you bought the original $399 phone and data plan. So, what else can $2,000 buy you over the course of two years? Turns out, a whole lot. Thirty-three pairs of Nike sneakers (NKE), four shares of Google (GOOG) stock and a year of gas are only a couple ways you could spend those precious ducats that otherwise might go to a new iPhone.

And if you’re patient, that $2,000 can become a lot more if you tuck it away to reap the rewards of compound interest. How so? TheStreet.com's Farnoosh Torabi dials up all the answers here.

Catch more of Farnoosh’s advice on Real Simple. Real Life. on TLC, Friday nights at 8 p.m.