On an Average Day, Goose Down Feathers Receives $2,400 in Checks

question 96

Multiple Choice

On an average day, Goose Down Feathers receives $2,400 in checks from customers. These checks clear the bank in an average of 1.7 days. The applicable daily interest rate is 0.04 percent. What is the present value of the float? Assume each month has 30 days.

• A)$115.20
• B)$618.40
• C)$2,400.00
• D)$4,080.00
• E)$4,256.50

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Definitions:

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.

Allocation of Resources

The process of distributing scarce resources among various uses or competing demands to maximize output or efficiency in an economy.

Income Distribution

Refers to the way in which total income is shared among the members of a society.

Income Inequality

The uneven distribution of income within a population, leading to gaps between the wealthiest and the poorest individuals.