Nash Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,900. The manufacturer has offered a payment plan that would allow Nash to make 10 equal annual payments of $21,300.00, with the first payment due one year after the purchase.

How much total interest will Nash pay 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.)

Total interest

$

Nashcould borrow $106,900 from its bank to finance the purchase at an annual rate of 9%. Click here to view factor tables Should Nash borrow from the bank or use the manufacturers 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%.)

Manufacturer's rate

%

borrow from bank or use manufacture payment plan