1. As part of your retirement planning, you purchase an annuity that pays 3.25 % annual interest compounded quarterly a. If you make quarterly payments of $1000 how much will you have saved in 5 years? b. Instead, if you make quarterly payments of $500, how much will you have saved in 10 years?

with n=4 (because the interest is compounded quarterly, which is 4 times a year} t is the time in 1wears r is the interest rate