1. Simple versus compound interest AaAa Financial contracts involving investments, mortgages, loans, and so on are based on ether a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question olivia plans to loan $700 to her friend, who will pay a simple interest rate of 8.6% every year for the loan. If no payments are made and no further borrowing occurs between them for nine years, then how much money will Olivia's friend owe her? O $1,470.84 $160.20 O $1,241.80 $765.38 Now, assume that olivia's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 8.6% compounded annually, all other things being equal, how much money will Olivia's friend owe her in nine years? O $760.20 $1,470.84 O $1,241.80 O $126.49 Olivia has another investment option in the market that pays 8.6% nominal interest, but it's compounded quarterly Keeping everything else constant, how much money will Olivia have in nine years if she invests $700 in this fund? O $762.17 $1,505.50 O $140.61 O $160.20