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Cheyenne Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,700. The manufacturer has offered a payment plan that would allow Cheyenne to make 6 equal annual payments of $22,448.02, with the first payment due one year after the purchase. Cheyenne could borrow $100,700 from its bank to finance the purchase at an annual rate of 8%.

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Cheyenne Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,700. The manufacturer has

offered a payment plan that would allow Cheyenne to make 6 equal annual payments of $22,448.02, with the first payment due one year after the purchase.

Cheyenne could borrow $100,700 from its bank to finance the purchase at an annual rate of 8%.

 
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