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. Ava deposited $1,300 in a savings account at her bank. Her account will earn an annual simple interest rate of 8.2%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 5 years? O $1,927.88 O $1,833.00 O $1,415.34 O $206.60 Now, assume that Ava's savings institution modifies the terms of her account and agrees to pay 8.2% in compound interest on her $1,300 balance. All other things being equal, how much money will Ava have in her account in 5 years? O $1,927.88 O $158.09 O $1,406.60 O $1,833.00 Suppose Ava had deposited another $1,300 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 8.2% but with quarterly compounding. Keeping everything else constant, how much money will Ava have in her account at this bank in 5 years? O $173.08 $206.60 O $1,409.92 O $1,950.76