Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $109,000. The...
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Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $109,000. The manufacturer has offered a payment plan that would allow Amos to make 15 equal annual payments of $14,331, with the first payment due one year after the purchase. (a) How much total interest will Amos pay on this payment plan? (Round answers to 0 decimal places, e.g. $458,581.) Total interest $ (b) Amos could borrow $109,000 from its bank to finance the purchase at an annual rate of 9%. Should Amos borrow from the bank or use the manufacturers payment plan to pay for the equipment?
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