An investor will receive Shs 20,000, Shs 15,000, and Shs 30,000 at the end of years one, two, and three from today respectively, and leave a balance of Shs 1,000. If the rate of interest during years one and three is 8 % per annum and 13% per annum respectively, and the present value of the cashflows is Shs 60,000, what is the rate of interest in year two?

Select one:

A. 12.50%

B. 18.97%

C. 25.45%

D. -4.92%

Answer rating: 100% (QA)

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