Sheridan Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $100,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2020, for a period of two years. Sheridan has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (including both principal and interest) starting August 1, 2020. The loan would be for 80% of the equipments purchase price. The current market rate of interest is 6%. Both contracts have an interest rate of 6%. Calculate the amount of the payments required of Sheridan under each alternative.

1. Quarterly fixed principal + interest payments option with manufacturer: Total amount of payments:__________________

2. Fixed blended monthly instalment note with the bank including principal and interest: Total amount of payments:____________________