An insurance firm agrees to pay you $3,021 at the end of 14 years if you pay premiums of $194 per year at the end of each year for 14 years. Find the internal rate of return to the nearest whole percentage point. Assuming you normally earn a return of 7 percent on your investments, is this a good deal or a bad deal?

1.62%; bad deal

1.62%; good deal

1.82%; good deal

1.82%; bad deal

2.02%; bad deal