Tommie Harris is considering an investment that pays 6.5 percent annually. How much must he invest today such that he will have $25,000 in seven years?

Tommie Harris needs to invest a lump sum of $17,184.05 today in order to have $25,000 in seven years from now. This calculation can be done by using the future value formula which states that the value of an investment at a given point in time is equal to the present value multiplied by an interest rate raised to a power (time).

Using this formula, we can calculate how much he must invest such that it will grow to $25,000 over seven years as follows:

Future Value = Present Value (1 + Interest Rate) ^ Time
$25,000 = Present Value (1 + 0.065) ^ 7
Present Value = $17,184.05 

The purpose of this calculation is so that Tommie can determine how much capital he would need upfront in order to achieve his desired outcome within a certain timeframe. By knowing what amount must be invested initially and understanding the associated risks involved with any investment decisions one is able to make more informed decisions when evaluating potential opportunities presented to them.

Moreover, it also helps provide clarity around any potential returns expected for example if Harris invests based on the above calculations then he’s going to expect approximately 6.5 percent return annually for his money over a 7 year period.