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 Ava deposited $500 at her local credit union in a savings account $145.00 at the rate of 9% paid as simple interest. She will earn interest $725.00 once a year for the next five years. If she were to make no additional deposits or withdrawals, how much money would the $549.05 credit union owe Ava in five years? $769.31 Now, assume that Ava's credit union pays a compound interest$769.31 rate of 9% compounded annually. All other things being equal, O $69.24 $545.00 O $725.00 how much will Ava have in her account after five years? Before deciding to deposit her money at the credit union, Ava checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 9% compounded quarterly. If Ava had deposited $500 at her local bank, how much would she have had in her account after five years? O $76.54 O $546.54 O $780.25 $145.00