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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

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 $19,000. "You have shopped around and know that you can buy a Spitfire for cash for

$64,600. What is the interest rate the dealer is advertising (what is the internal rate of return (IRR) of the loan in theadvertisement)? Assume that you must make the annual payments at the end of each year.

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