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Question - Mr. Jamil has Rs. 70,000 that he can deposit in savings accounts of any of three banks A,B or C for a three years period. Bank A compound interest on annual basis; Bank B compounds interest semi-annually (twice a year); Bank C compounds interest quarterly (four times each year). All three banks have a stated annual interest rate of 12%.
How much Mr. Jamil will have in his account after three years if he deposits his money in bank A?
How much Mr. Jamil will have in his account after three years if he deposits his money in bank B?
How much Mr. Jamil will have in his account after three years if he deposits his money in bank C?
On the basis of your findings in above parts, describe which bank should Mr. Jamil deal with and why?
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