Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $108,000.

Amos Excavating Inc. is purchasing a bulldozer. The equipment has a price of $108,000. The manufacturer has offered a payment plan that would allow Amos to make 14 equal annual payments of $13,871, with the first payment due one year after the purchase. (show work,Please)

(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 $108,000 from its bank to finance the purchase at an annual rate of 8%. Should Amos borrow from the bank or use the manufacturer’s payment plan to pay for the equipment?