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Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $104,000. The manufacturer has offered a payment plan that would allow Amos to make12 equal annual payments of $14,524, with the first payment due one year after the purchase.
(a) How much total interest will Amos pay on this payment plan?Total interest $
(b) Amos could borrow $104,000from its bank to finance the purchase at an annual rate of 8%. Should Amos borrow from the bank or use the manufacturer's payment plan to pay for the equipment?
Use Manufacturer's Payment PlanBorrow from the Bank
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