Abigail plans to loan $1,200 to her friend, who will pay a simple interest rate of 8.2% every year for the loan. If no payments are made and no further borrowing occurs between them for 13 years, then how much money will Abigails friend owe her?

a. $3,342.99

b. $2,479.20

c. $1,306.47

d. $198.40

Now, assume that Abigails friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 8.2% compounded annually, all other things being equal, how much money will Abigails friend owe her in 13 years?

a. $3,342.99

b. $274.13

c. $1,298.40

d. $2,479.20

Abigail has another investment option in the market that pays 8.2% nominal interest, but its compounded quarterly. Keeping everything else constant, how much money will Abigail have in 13 years if she invests $1,200 in this fund?

a. $1,301.47

b. $305.85

c. $198.40

d. $3,447.13