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Mr. Imran has Rs.150, 000 in cash that he can deposit in any of four savings accounts in four different banks for a 7 year period. Bank A compounds interest on an annual basis; Bank B compounds interest twice each year; Bank C compounds interest each quarter and Bank D compounds interest on daily basis. All four banks have a stated annual interest rate of 12%. Required:

1. What amount would Mr. Imran have at the end of 7th year in each bank?
2. What effective annual interest rate would he earn in each of the four banks?
3. On the basis of your findings in a and b, which bank should Mr. Imran deal withand Why?