₹12000 is invested for two years with interest compounded annually. The rate for the first year is 10%, and at the end of the second year the investment stands at ₹14784. The rate for the second year is what percent?

After one year the money is $12000\times 1.10$ = ₹13200, and 14784/13200 = 1.12, so the second year's rate is 12%. The total growth is 14784/12000 = 1.232; subtracting the first year's 10% from that 23.2% gives 13.2%, and halving it gives 11.6% — but growth factors multiply, they do not add, and the second year's rate acts on ₹13200, not on ₹12000.