Simple versus compound interest 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 deposited $1, 600 at her local credit union in a savings account at the rate of 9.4% paid as simple interest. She will earn interest once a year for the next seven years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Emma in seven years? $3,000.83 $250.40 $2, 652.80 $1, 764.54 Now, assume that Emma's credit union pays a compound interest rate of 9.4% compounded annually. All other things being equal, how much will Emma have in her account after seven years? $1, 750.40 $3,000.83 $2, 652.80 $282.08 Before deciding to deposit her money at the credit union, Emma checked the interest rates at her local bank as well The bank was paying a nominal interest rate of 9.4% compounded quarterly. If Emma had deposited $1, 600 at her local bank, how much would she have had in her account after seven years? $1, 755.79 $250.40 $315.31 $3, 066.05