Skysong excavating inc is purchasing a bulldozer the equipment has a price of $104,500 the manufacturer has offered a payment plan that would allow skysong to make 5 equal annual payments of $26,17270, with the first payment due one year after the purchase collapse question part

(a)

How much total interest will Skysong pay on this payment plan? 

Total interest

$

  

(b)

Skysongcould borrow $92,800 from its bank to finance the purchase at an annual rate of 9%.

Should Skysong borrow from the bank or use the manufacturer’s payment plan to pay for the equipment?

Answer rating: 100% (QA)

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