Big E Co. buys a heavy duty forklift for its warehouse operations.This equipment costs $80,000.The dealer offers Big E the opportunity to pay off the financing loan in 5 annual payments or60 monthly payments, at Big E's option.The interest rate is 12%.

Which option is better?

Annual payment if paid in 5 installments:

Monthly payment if paid in 60 installments:

Annual total of 12 monthly payments:Extra amount by paying annually (A - B)

2)