Roger's Distributors Receives an Average of 310 Checks a Day

question 91

Multiple Choice

Roger's Distributors receives an average of 310 checks a day.The average amount per check is $629.The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1.5 days.The daily interest rate on Treasury bills is 0.011 percent.What is the amount of the expected daily savings of the lockbox system?

• A)$2.04
• B)$6.92
• C)$14.95
• D)$22.42
• E)$32.17

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Definitions:

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An umbrella term used by Native American people to recognize individuals who possess qualities or fulfill roles of both genders.

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The customs, beliefs, arts, and social institutions of the Navajo people, a Native American group primarily living in the Southwestern United States.

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