Question
Riverbed Excavating Inc. is purchasing a bulldozer. The equipment has a price of $91,400. The manufacturer has offered a payment plan that would allow Riverbed
Riverbed Excavating Inc. is purchasing a bulldozer. The equipment has a price of $91,400. The manufacturer has offered a payment plan that would allow Riverbed to make 7 equal annual payments of $18,774.06, with the first payment due one year after the purchase. How much total interest will Riverbed 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 $ LINK TO TEXT Riverbed could borrow $91,400 from its bank to finance the purchase at an annual rate of 9%. Click here to view factor tables Should Riverbed borrow from the bank or use the manufacturers payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%.) Manufacturer's rate %
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