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. Addison deposited $1,100 at her local credit union in a savings account at the rate of 7.4% paid as simple interest. She will earn interest once a year for the next 11 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Addison in 11 years? $1,187.42 $2,412.35 $1,995.40 O $181.40 Now, assume that Addison's credit union pays a compound interest rate of 7.4% compounded annually. All other things being equal, how much will Addison have in her account after 11 years? $1,995.40 $178.51 O $2,412.35 $1,181.40 Before deciding to deposit her money at the credit union, Addison checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 7.4% compounded quarterly. If Addison had deposited $1,100 at her local bank, how much would she have had in her account after 11 years? $195.84 $181.40 O $2,464.21 O $1,183.69