1. 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. Isabella deposited $1,400 in a savings account at her bank. Her account will eam 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? $1.498.50 $192.40 $3,213.45 $2,601.20 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? $1,492.40 $2,601.20 53,213.45 O $212.09 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 con stated) interest rate of 6.5% but with quarterly compounding. Keeping everything else constant, how much money will Isabella have in her account at this bank in 13 years? $1,494.71 O $192.40 5230.69 $3,278.78