Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of$104,000. The manufacturer has offered a payment plan that would allow Amosto make 12 equal annual payments of $14,524, with the first payment due oneyear after the purchase.(a) How much total interest will Amos pay on this payment plan? (Round answersto 0 decimal places, e.g. $458,581.)(b) Amos could borrow $104,000 from its bank to finance the purchase at anannual rate of 8%. Should Amos borrow from the bank or use the manufacturer'spayment plan to pay for the equipment?

Step 1: Step 2: Step 3: Step 4:

Answered: Amos Excavating Inc. is purchasing a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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