1. Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $95,300. The manufacturer has offered a payment plan that would allow Grouper to make 7 equal annual payments of $18,935.22, with the first payment due one year after the purchase

A. How much total interest will Grouper pay on this payment plan? $37,247

B. Grouper could borrow $95,300 from its bank to finance the purchase at an annual rate of 8%. Should Grouper borrow from the bank or use the manufacturers payment plan to pay for the equipment? Borrow From The Bank.

What is the Manufacturers rate????