Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $105,000. The manufacturer has offered a payment plan that would allow Sosa to make 14 equal annual payments of $14,253, with the first payment due one year after the purchase.

How much total interest will Sosa 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 $

Sosa could borrow $105,000 from its bank to finance the purchase at an annual rate of 9%. (Use the table below.) Should Sosa borrow from the bank or use the manufacturers payment plan to pay for the equipment?

Use Manufacturers Payment Plan Borrow from the Bank