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Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of 106000. The manufacturer has offered a payment plan that would allow Sosa
Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of 106000. The manufacturer has offered a payment plan that would allow Sosa to make 10 equal annual payments of 17999 with the first payment due one year after the purchase. How much total interest will Sosa pay on this payment plan?
Sosa could borrow 106,000 from its Bank to finance the purchase at an annual rate of 10%. Should Sosa borrow from the bank or use the manufacturer's payment plan to pay for the equipment?
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