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How much total interest will Bonita pay on this payment plan

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Question - Bonita Industries maintains its accounting records using IFRS. The company purchases equipment with a price of $490000. The manufacturer has offered a payment plan that would allow Bonita to make 10 equal annual payments of $60412, with the first payment due one year after the purchase. How much total interest will Bonita pay on this payment plan?

a. $49000

b. $196000

c. $114120

d. $60412

Reference no: EM132483109

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