Coronado Excavating Inc. is purchasing a bulldozer. The equipment has a price of $107,400. The manufacturer has offered a payment plan that would allow Coronado to make 10 equal annual payments of $17,500.00, with the first payment due one year after the purchase.

How much total interest will Coronado pay on this payment plan?

Coronadocould borrow $107,400 from its bank to finance the purchase at an annual rate of 9%.

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