Mr Haddit Plans to Retire Eight Years from Today

question 37

Short Answer

Mr. Haddit plans to retire eight years from today. He projects that he will need $30,000 per year in his retirement which he assumes will be for 15 years. The first payment will be nine years from today. To fund his retirement, Mr. Haddit will invest a lump amount today and later use it to sustain the 15 withdrawals. If his investment earns 6% compounded annually, how much must he invest today?

---

Definitions:

Southerners

People originating from the southern region of a nation, frequently denoting those hailing from the southern United States.

Southern Discontent

The general dissatisfaction and unrest in the Southern United States, traditionally concerning issues like economic policies, racial integration, and federal government intervention.

Secession

The act of withdrawing formally from membership in a federation or body, especially a political state.

South Carolina

A state in the southeastern United States, known for its roles in both the American Revolution and the Civil War.