Sandhill Excavating Inc. is purchasing a bulldozer. The equipment has a price of $90,500. The manufacturer has offered a payment plan that would allow Sandhill to make 5 equal annual payments of $26,997.52, with the first payment due one year after the purchase.

How much total interest will Sandhill 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 $ __________

Sandhill could borrow $90,500 from its bank to finance the purchase at an annual rate of 14%. Click here to view factor tables Should Sandhill 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 %___________