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Financial contracts involving investments, mortgages, Ioans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates

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Financial contracts involving investments, mortgages, Ioans, 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 $900 in a savings account at her bank. Her account will earn an annual simple interest rate of 7 \%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? $163,00 51,719,00 5967,41 42,168.86 Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in campound interest on her $900 balance. All other things being equal, how much money wil zoe have in her account in 13 years? 5963,00 5151.82 12,166,56 51,719,00 Suppose Zoe had deposited another $900 into a savings account at a second bank at, the same time. The second bank also pays a nominal (or stated) interest rate of 7\%s but with quarterly compounding. Keeping everything eise constant, how much money will Zoe have in her account at this bank in 13 yesis? 5,2,18,36 $166.16 $163.00 $964.67

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