If the simple interest rate of 24% is equivalent to a simple discount rate of 20.5% then the time under construction approximately equals how many days

Question

1. 260 days

2. 304 days.

3. 312 days

4. 711 days

5. 854 days

Answer 1

The simple  interest rate (annual) can be reduced to a daily rate: 24/365=0.0658%. If d is the number of days over which this is applied then 0.0658d will be equivalent to 20.5%. Therefore d=20.5/0.0658=312 days approx. (answer 3).