How Much Money Can Be Saved Annually by Setting Up

question 79

Multiple Choice

How much money can be saved annually by setting up a lock-box system that will process 500 cheques per day at a cost of $0.20 per cheque if each cheque averages $220, collection float is reduced by three days, and the annual interest rate is 8 percent?

• A)($27,700)
• B)($10,100)
• C)$10,000
• D)$16,400