What is the future value of $3,100 a year for six years at interest rate of 8.9 percent?

Answer:

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

Hence

A=$3100(1.089)^5+3100(1.089)^4+3100(1.089)^3+3100(1.089)^2+3100(1.089)^1+3100

=$3100[(1.089)^5+(1.089)^4+(1.089)^3+(1.089)^2+(1.089)^1+1]

=$3100*7.504376573

which is equal to

=$23263.57(Approx)(Please note that intermediate calculations have not been rounded off].