Coronado Excavating Inc. is purchasing a bulldozer. The equipment has a price of $98,200. The manufacturer has offered a payment plan that would allow Coronado to make 10 equal annual payments of $17,400.00, with the first payment due one year after the purchase.

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

Coronado could borrow $98,200 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?