How Much Money Can Be Saved Annually by Setting Up

question 24

Multiple Choice

How much money can be saved annually by setting up a lock-box system that will process 500 checks per day at a cost of $0.15 per check if each check averages $220,collection float is reduced by 3 days,and the annual interest rate is 8%? (Use a 365-day year.)

• A) −$2,125
• B) −$975
• C) $2,650
• D) $26,325

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Definitions:

Lynch Mob

A group of people who, without legal authority, come together to execute a presumed offender, often by hanging, primarily targeting African Americans.

Springfield, Ohio

A city in the United States known for its historical contributions to industry, education, and the antislavery movement.

Black Section

A designated area or part of an organization, community, or geographical area predominantly inhabited by or reserved for African Americans or people of African descent.

Virgin Islands

A group of islands in the Caribbean, comprising territories of the United States and the United Kingdom.