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. 25.45% B. 12.50% C. -4.92% D. 18.97%