Grouper Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The manufacturer has offered a payment plan that would allow Grouper to make 10 equal annual payments of $15,367.03, with the first payment due one year after the purchase.

1- How much total interest will Grouper pay on this payment plan?

Total interest = 63,170

2- Grouper could borrow $90,500 from its bank to finance the purchase at an annual rate of 9%. Should Grouper borrow from the bank or use the manufacturers payment plan to pay for the equipment?

Manufacturer's rate %?