**Crane Excavating Inc. - Equipment Financing**Crane Excavating Inc. is purchasing a bulldozer priced at $103,000. The manufacturer offers a payment plan where Crane makes 10 equal annual payments of $18,229.37, starting one year after purchase.### Interest Calculation**Question:**How much total interest will Crane pay on this payment plan? *(Round answer to 0 decimal places, e.g., 458,581.)*- **Total Interest**: $79,294**Answer:**The calculation confirms that the total interest paid over the duration of the payment plan is $79,294.Additional Resources:- [eTextbook and Media]**Attempts Used:**1 of 15This example illustrates understanding interest calculations in financial plans. **Finance Decision-Making Exercise**Crane could borrow $103,000 from its bank to finance the purchase at an annual rate of 9%.[Click here to view factor tables]**Decision Point:**Should Crane borrow from the bank or use the manufacturer’s payment plan to pay for the equipment? *(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 7%.)***Manufacturer's Rate:**[Input Box] %

a. Annual Payment is $18,229.37Total Number of Payments is 10 b. Amount Borrowed is $103,000Annual…

Answered: Crane Excavating Inc. is purchasing a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crane Excavating Inc. is purchasing a bulldozer. The equipment has a price of $103,000. The manufacturer has offered a payment plan that would allow Crane to make 10 equal annual payments of $18,229.37, with the first payment due one year after the purchase.