1. Simple versus compound interest 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. Olivia deposited $800 at her local credit union in a savings account at the rate of 6.2% paid as simple interest. She will earn interest once a year for the next 7 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Olivia in 7 years? $852.68 $1,218.88 $1,147.20 $149.60 Now, assume that Olivias credit union pays a compound interest rate of 6.2% compounded annually. All other things being equal, how much will Olivia have in her account after 7 years? $75.57 $1,218.88 $849.60 $1,147.20