2. 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 $1,500 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? O $1,647.15 o $2,445.00 o $2,742.06 O $235.00 Now, assume that Abigail'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 Abigail's friend owe her in seven years? o $1,635.00 O $2,445.00 O $246.79 O $2,742.06 Abigail has another investment option in the market that pays 9% nominal interest, but it's compounded quarterly. fund? Keeping everything else constant, how much money will Abigail have in seven years if she invests $1,500 in this O $235.00 O $1,639.6:2 O $274.37 O $2,796.82 Flash Player WIN 31,0,0,108