Question

Exercise 6-11 Pharoah Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,900. The manufacturer has offered a payment plan that would allow Pharoah to make 13 equal annual payments of $14,278.27, with the first payment due one year after the purchase. How much total interest will Pharoah pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Total interest $ Pharoah could borrow $106,900 from its bank to finance the purchase at an annual rate of 8%. Click here to view factor tables Should Pharoah borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%). Manufacturer's rate %

          Exercise 6-11
Pharoah Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,900. The manufacturer has offered a payment plan that would allow Pharoah to
make 13 equal annual payments of $14,278.27, with the first payment due one year after the purchase.
How much total interest will Pharoah pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)
Total interest
$
Pharoah could borrow $106,900 from its bank to finance the purchase at an annual rate of 8%.
Click here to view factor tables
Should Pharoah borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%).
Manufacturer's rate
%

Exercise 6-11
Pharoah Excavating Inc. is purchasing a bulldozer. The equipment has a price of 106,900. The manufacturer has offered a payment plan that would allow Pharoah to
make 13 equal annual payments of14,278.27, with the first payment due one year after the purchase.
How much total interest will Pharoah pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)
Total interest
Pharoah could borrow106,900 from its bank to finance the purchase at an annual rate of 8%.
Click here to view factor tables
Should Pharoah borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%).
Manufacturer's rate
%

Added by Nicole G.

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