Final answer:
The future value of the $970 annuity payment over four years with an 8% interest rate is $4,127.41.
Step-by-step explanation:
The future value of a $970 annuity payment over four years with an interest rate of 8 percent can be calculated using the formula:
FV = P * ((1+r)^n - 1) / r
Where:
- FV is the future value
- P is the payment
- r is the interest rate
- n is the number of periods
Plugging in the values, the future value is:
FV = 970 * ((1+0.08)^4 - 1) / 0.08 = $4,127.41
Therefore, the future value of the annuity payment is $4,127.41.