Compound Interest (CI) formula:

CI = P × (1 + R/100)^Time – P

Given values:

P = Rs. 1200
Time = 2 years
Amount after 2 years = Rs. 1348.32

CI = 1348.32 – 1200
= 148.32

Now, use the CI formula to solve for R:

148.32 = 1200 × (1 + R/100)^2 – 1200

Rearrange the equation:

(1 + R/100)^2 = (1348.32) / 1200
(1 + R/100)^2 = 1.124

Take the square root of both sides:

1 + R/100 = √1.124
1 + R/100 ≈ 1.06

Solve for R:

R/100 = 1.06 – 1
R/100 = 0.06
R ≈ 6

The rate of compound interest per annum is approximately 6%.