Answer:
The cost of the truck that should be recorded at the time of purchase is $46,639
Paying installment is the best option
Explanation:
In order to Calculate the cost of the truck that should be recorded at the time of purchase we need find out present value of future amount of 60,400 with the following formula:
PV=FV/(1+i)^n
FV = Future value
i = interest rate
n = No of years
By applying the formula = 60,400/(1+.09)^3
PV= $46,639
Therefore, $46,639 should be recorded as a cost of truck.
Paying installment is better option than paying lump sum amount of $28,400 as present value of installment method ($26,322 as per below table) is less than immediate payment amount.
PV of installment method
Year installment method PV Factor PV
1 10,400 0.917 9,537
2 10,400 0.842 8,757
3 10,400 0.772 8,029
Total 26,322
It illustrates the business cycle, I think.
Answer:
1. adding groups
2. sorting groups
3. adding totals
4. previewing the report
Explanation:
The options that are available on the Group, Sort, and Total pane are:
1. adding groups
2. sorting groups
3. adding totals
4. previewing the report
Therefore, given that Group, Sort, and Total pane give necessary options to amend the report's grouping fields, sort fields, add totals, and eventually report calculations for the groups when needed.
