1. Jim makes deposit of $12,000 in a bank account The deposit is to earn interest compounded annually at the rate of 6 percent for seven years 1. How much will Jim have on deposit at the end of seven years?(Hint:What is future value?) 2. Assuming the deposit earned a 9 percent rate of interest compounded quarterly, how much would he have at the end of seven years? 3. In comparing (a) and (b),what are the respective effective annual yields? (Hint:Consider the future value of each deposit after one year only.) Which alternative is better