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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

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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 deposited $1,800 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 five years? O $2,524.59 O $226.00 O $1,934.82 $2,430.00 Now, assume that Hailey's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $1,800 balance.All other things being equal, how much money will Hailey have in her account in five years? $2,430.00 O $176.72 $2,524.59 O $1,926.00 Suppose Hailey had deposited another $1,800 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% but with quarterly compounding. Keeping everything else constant, how much money will Hailey have in her account at this bank in five years? O $226.00 O $190.74 $2,546.60 O $1,929.35

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