Steven wants to accumulate $40,000 in a fund with payments of $1,000 made at the end of every quarter. The interest rate is 4.25% compounded quarterly.

a. How many payments (rounded up to the next payment) will it take to accumulate this amount?

40 payments

24 payments

33 payments

34 payments

b. How long will it take to accumulate this amount?

10 years and 6 months

11 years and 3 months

10 years and 6 months

8 years and 6 months