Ch OS: Assignment - Time Value of Money 2. Simple versus compound Interest Financial contracts involving Investments, mortgages, toons, and so on are based on either a fixed or a variable interest rate. Assume that foed Interest rates are used throughout this question. Isabella deposited $1,400 in a savings account at her bank. Her account will earn an annual simple interest rate of 6.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? 0 $3,213.45 $192.40 $1,498.50 $2,501.20 Now, assume that Isabella's savings institution modifies the terms of her account and agrees to pay 6.6% in compound Interest on her $1,400 balance. All other things being equal, how much money will Isabella have in her account in 13 years? $212.09 $2,601.20 $3.213.45 51,492.40 Suppose Isabella had deposited another $1,400 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 6.5% but with quarterly compounding. Keeping everything else constant, how much money will Isabella bave in her account at