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PLEASE HELP ME ANSWER PART B - Vaughn Excavating Inc. is purchasing a...

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Accounting

PLEASE HELP ME ANSWER PART B -
Vaughn Excavating Inc. is purchasing a bulldozer. The equipment has a price of $104,300. The manufacturer has offered a payment
plan that would allow Vaughn to make 10 equal annual payments of $18,490.00, 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 0 decimal places, e.g.5,125.)
Total interest $
eTextbook and Media
Attempts: 1 of 5 used
(b)
Your answer is partially correct.
Vaughn could borrow $104,300 from its bank to finance the purchase at an annual rate of 9%.
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 5
decimal places, e.g.1.25124 and final answer to 0 decimal places, e.g.7%.)
Manufacturer's rate
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