Gonzalo is selling his house. Offer #$1$ puts $$44,000$ down and pays the lump sum $$873,800$ in $8$ months.

Today

$8$ Months

$$44,000$

$$873,800$

PV$1$

$+$

Total

Time Diagram

Offer #$2$ puts $$44,000$ down and pays the lump sum $$878,070$ in $11$ months.

Today

$11$ Months

$$44,000$

$$878,070$

PV$2$

$+$

Total

Time Diagram

At what simple interest rate would Gonzalo be indifferent to the two offers? Use today as the focal date.