On an Average Day, Your Firm Receives $21,800 in Cheques

question 70

Multiple Choice

On an average day, your firm receives $21,800 in cheques from customers. These cheques are processed and clear the bank in an average of 1.8 days. The applicable daily interest rate is.0185 %. What is the highest daily fee your firm should pay to completely eliminate the collection float? Assume each month has 30 days.

• A) $5.42
• B) $5.97
• C) $6.50
• D) $7.26
• E) $8.01

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Definitions:

Alcohol Use Disorder

A condition where individuals struggle to restrain or end their alcohol consumption, despite experiencing negative social, professional, or health impacts.

Major Depressive Disorder

A mental disorder characterized by at least two weeks of pervasive sadness or lack of interest in activities, along with other symptoms.

Generalized Anxiety Disorder

A mental health disorder characterized by pervasive and excessive anxiety and worry about various aspects of life, beyond normal stressors.

Apprehensive

Feeling anxiety or fear about the future or something specific.