You are considering purchasing a warehouse. The cost to purchase the warehouse is $494,000. Renting the equivalent space costs $19,200 per year. If the annual interest rate is 6.5%, at what rate must rental cost increase each year to make the cost of renting comparable to purchasing? Assume that the rent will be paid at the end of each year. Rental costs must grow at a rate of % per year for the cost of renting to be comparable to the cost of purchasing the warehouse. (Round to one decimal place.) P4-50 (similar to) Question Help A local bank is running the following advertisement in the newspaper: "For just $5,000 we will pay you $350 forever!" The fine print in the ad says that for a $5,000 deposit, the bank will pay $350 every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the IRR of this investment)? The interest rate is 1%. (Round to the nearest integer.) You are shopping for a car and read the following advertisement in the newspaper: "Own a new Spitfire! No money down. Four annual payments of just $13,000." You have shopped around and know that you can buy a Spitfire for cash for $46,800. What is the interest rate the dealer is advertising (what is the IRR of the loan in the advertisement)? Assume that you must make the annual payments at the end of each year. (Hint: Use a calculator or excel spreadsheet to find the IRR.) The internal rate of return (IRR) is %. (Round to two decimal places.)