On an Average Day, Your Firm Receives $10,600 in Checks

question 166

Multiple Choice

On an average day, your firm receives $10,600 in checks from customers. These checks clear the bank in an average of 4 days. The applicable daily interest rate is.02 %. What is the highest daily fee your firm should pay to completely eliminate the collection float? Assume each month has 30 days.

• A) $6.36
• B) $8.48
• C) $15.90
• D) $21.20
• E) $25.40

---

Definitions:

Procedures

Established methods or sequences of steps followed to perform a task or solve a problem efficiently and consistently.

Microsoft Azure

A cloud computing service created by Microsoft for building, testing, deploying, and managing applications and services through Microsoft-managed data centers.

Virtual Network

A digital network that uses software and virtualized hardware resources to provide network functionality in a virtual environment.