L. 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. Emma plans to loan $1,800 to her friend, who will pay a simple interest rate of 9.8% 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 Emma's friend owe her? $6,068.80 O $1,993.69 $276.40 0 $4,093.20 Now, assume that Emma's friend volunteers to pay compound interest instead of simple interest for her loan. If interest is accrued at 9.8% compounded annually, all other things being equal, how much money will Emma's friend owe her in 13 years? O $1,976.40 $6,068.80 $594.74 O $4,093.20 Emma has another investment option in the market that pays 9.8% nominal interest, but it's compounded quartert Keeping everything else constant, how much money will Emma have in 13 years if she invests $1,800 in this fund? O $276.40 O $6,337.16 O $681.91 O $1,982.99