Rs.4500 amounts to Rs.5544 in two years at compound interest, compounded annually. If the rate of the interest for the first year is 12%, find the rate of interest for the second year?
Options:
A . 10%
B . 12%
C . 15%
D . 20%
E . None of these
Answer: Option A
Let the rate of interest during the second year be R%. Given, 4500 * {(100 + 12)/100} * {(100 + R)/100} = 5544 R = 10%
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