3. 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 Zoe deposited $500 at her local credit union in a savings account O $1,052.43 at the rate of 7% paid as simple interest. She will earn interest $135.00 once a year for the next 11 years. If she were to make no additional deposits or withdrawals, how much money would the O $885.00 credit union owe Zoe in 11 years? O $537.45 Now, assume that Zoe's credit union pays a compound interest rate of 7% compounded annually. All other things being equal, how much will Zoe have in her account after 11 years? $885.00 $73.67 O $1,052.43 O $535.00 Before deciding to deposit her money at the credit union, Zoe checked the interest rates at her local bank as well The bank was paying a nominal interest rate of 7% compounded quarterly. If Zoe had deposited $500 at her local bank, how much would she have had in her account after 11 years? O $80.35 O $135.00 O $535.93 $1,072.72