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 Hailey plans to loan $1,000 to her friend, who will pay a simple interest rate of 5.8% every year for the loan. If no payments are made and no further borrowing occurs between them for seven years, then how much money will Hailey's friend owe her? $1,061.36 $1,406.00 O$1,483.88 O $158.00 Now, assume that Hailey's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 5.8% compounded annually, all other things being equal, ho much money will Hailey's friend owe her in seven years? O $1,406.00 O $86.07 O $1,058.00 o $1,483.88 Hailey has another investment option in the market that pays 5.8% nominal interest, but it's compounded quarterly. Keeping everything else constant, how much money will Hailey have in seven years if she invests $1,000 in this fund? $91.82 O $1,496.43 O $1,059.27 O $158.00