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.
Mia deposited $600 at her local credit union in a savings account at the rate of 7.8% paid as simple interest. She will earn interest once a year for the next 11 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Mia in 11 years?

$1,370.75
$1,114.80
$650.45
$146.80
Now, assume that Mia’s credit union pays a compound interest rate of 7.8% compounded annually. All other things being equal, how much will Mia have in her account after 11 years?

$646.80
$1,370.75
$1,114.80
$106.92
Before deciding to deposit her money at the credit union, Mia checked the interest rates at her local bank as well. The bank was paying a nominal interest rate of 7.8% compounded quarterly. If Mia had deposited $600 at her local bank, how much would she have had in her account after 11 years?

$648.19
$1,403.43
$118.00
$146.80