Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $$440,000.$ The company can borrow $$440,000$ for three years at $14$ percent annual interest or for one year at $12$ percent annual interest. Assume interest is paid in full at the end of each year.

$6\mathrm{.}66$

a$.$ How much would Sauer Food Company save in interest over the three$-$year life of the computer system if the one$-$year loan is utilized and the loan is rolled over $($reborrowed$)$ each year at the same $12$ percent rate? Compare this to the $14$ percent three$-$year loan.

Answer is complete and correct.

$\backslash$table$[[,$Interest$],[12$ percent loan,$$,158,400$~~