Financial contracts involving investments, mortgages, loans, and so on are based

2. 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. Sheila deposited $1,200 at her local credit union in a savings account at the rate of 5.8% paid as simple interest. She will earn $1,590.78 interest once a year for the next five years. If she were to makeO $169.60 no additional deposits or withdrawals, how much money would the credit union owe Sheila in five years? O $1,273.64 o $1,548.00 Now, assume that Sheila's credit union pays a compound interest rate of 5.8% compounded annually. All other things being equal, how much will Sheila have in her account after five years? $92.27 $1,590.78 O $1,548.00 O $1,269.60 Before deciding to deposit her money at the credit union, Sheila checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 5.8% compounded quarterly. If Sheila had deposited $1,200 at her local bank, how much would she have had in her account after five years? O $1,600.38 O $169.60 O $98.21 O $1,271.13