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 Abigail plans to loan $900 to her friend, who will pay a simple interest rate of 9% every year for the loan. If no payments are made and no further borrowing occurs between them for seven years, then how much money will Abigail's friend owe her? $1,645.24 $181.00 $1,467.00 O $988.29 Now, assume that Abigail's friend volunteers to pay compoundO $981.00 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 Abigail's friend owe her in seven years? $1,645.24 $1,467.00 $148.07 Abigail has another investment option in the market that pays 9% nominal interest, but it's ompounded quarterly Keeping everything else constant, how much money will Abigail have in seven years if she invests $900 in this fund? $164.62 $983.77 O $1,678.09 O $181.00