1. Simple versus compound interest Aa Aa Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Zoe plans to loan $700 to her friend, who will pay a simple interest rate of 9% every year for the loan. If no payments are $163.00 made and no further borrowing occurs between them for seven$1,279.63 years, then how much money will Zoe's friend owe her? O $1,141.00 O $768.67 Now, assume that Zoe's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 9% compounded annually, all other things being equal, how much money will Zoe's friend owe her in seven years? O $1.279.63 $763.00 O $115.17 $1,141.00 Zoe has another investment option in the market that pays 9% nominal interest, but it's compounded quarterly. Keeping everything else constant, how much money will Zoe have in seven years if she invests $700 in this fund? O $1,305.18 O $128.04 O $765.16 O $163.00 Fash Player WN 32,0,0,192 3342004-2016 Aplie Al ights neserved 2013 Congage Laring ptas notod. All nghts rved Grade It Now