PLEASE HELP ME ANSWER PART B
Vaughn Excavating Inc. is purchasing a bulldozer. The equipment has a price of $ The manufacturer has offered a payment
plan that would allow Vaughn to make equal annual payments of $ with the first payment due one year after the
purchase.
a
Your answer is correct.
How much total interest will Vaughn pay on this payment plan? Round answer to decimal places, eg
Total interest $
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Attempts: of used
b
Your answer is partially correct.
Vaughn could borrow $ from its bank to finance the purchase at an annual rate of
Click here to view factor tables.
Should Vaughn borrow from the bank or use the manufacturer's payment plan to pay for the equipment? Round factor values to
decimal places, eg and final answer to decimal places, eg
Manufacturer's rate
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