2. 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. Abigail deposited $1,100 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next five years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Abigail in five years? O $207.80 $1,639.00 $1,755.51 O $1,218.36 Now, assume that Abigail's credit union pays a compound interest rate of 9.8% compounded annually. All other things being equal, how much will Abigail have in her account after five years? O $172.04 ) $1,755.51 $1,639.00 o $1,207.30 Before deciding to deposit her money at the credit union, Abigail checked the interest rates at her local bank as wel. The bank was paying a nominal interest rate of 9.8% compounded quarterly. If Abigail had deposited $1,100 at her local bank, how much would she have had in her account after five years? o $1,784.97 O $207.80 O $1,211.83 $192.06