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Exercise - evaluation of purchase options sosa excavating

Exercise - Evaluation of Purchase Options

Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $00,000. The manufacturer has offered a payment plan that would allow Amos to make 10 equal annual payments of $16,214. 53, with the first payment due one year after the purchase.

How much total interest will Sosa pay on this payment plan?

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