1) Monty Excavating Inc. is purchasing a bulldozer. The equipment has a price of $104,500. The manufacturer has offered a payment plan that would allow Monty to make 5 equal annual payments of $26,172.70, with the first payment due one year after the purchase.

How much total interest will Monty pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

total interest = ____%

2) Monty could borrow $104,500 from its bank to finance the purchase at an annual rate of 7%.

Should Monty borrow from the bank or use the manufacturers payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%.)

Manufacturer's rate= ______ %