Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. A. 12.19 % B. 12.03 % C. 11.54 % D. 10.29 %

The correct answer is A. 12.19 %.

The formula for simple interest is $I = PRT$, where $I$ is the interest, $P$ is the principal, $R$ is the rate, and $T$ is the time. In this case, we know that $P = 1842$, $R = ?$, $T = 10$, and $I = 2000 – 1842 = 158$. Substituting these values into the formula, we get $158 = 1842 \cdot R \cdot 10$. Solving for $R$, we get $R = \frac{158}{1842 \cdot 10} = 0.01219 = 12.19\%$.

Option B is incorrect because $12.03\%$ is not the rate of simple interest. Option C is incorrect because $11.54\%$ is not the rate of simple interest. Option D is incorrect because $10.29\%$ is not the rate of simple interest.