Blossom Excavating Inc. is purchasing a bulldozer. The equipment has a price of $93,800. The manufacturer has offered a payment plan that would allow Blossom to make 10 equal annual payments of $18,700.00, with the first payment due one year after the purchase.

Blossom could borrow $93,800 from its bank to finance the purchase at an annual rate of 9%.

Should Blossom borrow from the bank or use the manufacturers payment plan to pay for the equipment?

What is the manufacturer's rate?