Question
Ayayai Excavating Inc. is purchasing a bulldozer. The equipment has a price of $103,600. The manufacturer has offered a payment plan that would allow Ayayai
Ayayai Excavating Inc. is purchasing a bulldozer. The equipment has a price of $103,600. The manufacturer has offered a payment plan that would allow Ayayai to make 10 equal annual payments of $20,610.00, with the first payment due one year after the purchase. (a) Correct answer iconYour answer is correct. How much total interest will Ayayai pay on this payment plan? (Round answer to 0 decimal places, e.g. 458,581.) Total interest $ 102500 Attempts: 1 of 2 used (b) Ayayai could borrow $103,600 from its bank to finance the purchase at an annual rate of 9%. Click here to view factor tables Should Ayayai borrow from the bank or use the manufacturers payment plan to pay for the equipment? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 7%.) Manufacturer's rate %
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