What Are the Expected Annual Savings from a Lock-Box System

question 7

Multiple Choice

What are the expected annual savings from a lock-box system that collects 150 cheques per day averaging $500 each, and reduces mailing and processing times by 2.5 and 1.5 days respectively, if the annual interest rate is 7 percent?

• A)$5,250
• B)$13,125
• C)$21,000
• D)$300,000 Annual savings = average collections x time saved x annual interest rate
• = 150 x $500 x (2.5 + 1.5) x .07

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Definitions:

Permissive-indulgent

A parenting style characterized by high responsiveness and low demands, where parents are highly involved with their children but place few rules and demands.

Authoritarian

A leadership or parenting style marked by strict discipline, high demands, and a lack of responsiveness to the needs or opinions of others.

Permissive Parents

Parenting style characterized by low demands with high responsiveness, often leading to children with less self-discipline.

Power-assertive Techniques

Disciplinary methods used by caregivers that rely on the use of authority, demands, and possibly physical coercion to modify behavior.