Question
MartinezExcavating Inc. is purchasing a bulldozer. The equipment has a price of $106,900. The manufacturer has offered a payment plan that would allowMartinezto make10equal annual
MartinezExcavating Inc. is purchasing a bulldozer. The equipment has a price of $106,900. The manufacturer has offered a payment plan that would allowMartinezto make10equal annual payments of $21,300.00, with the first payment due one year after the purchase.
- How much total interest willMartinezpay on this payment plan?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Martinez could borrow $106,900from its bank to finance the purchase at an annual rate of9%.
ShouldMartinezborrow from the bank or use the manufacturer's payment plan to pay for the equipment?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 7%.)
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