On an Average Day,Wilson & Wilson Receives $7,800 in Checks

question 32

Multiple Choice

On an average day,Wilson & Wilson receives $7,800 in checks from customers.These checks clear the bank in an average of 1.7 days.The applicable daily interest rate is 0.022 percent.What is the highest daily fee this firm should pay to completely eliminate its collection float? Assume each month has 30 days.

• A)$1.72
• B)$2.92
• C)$17.20
• D)$24.30
• E)$29.17

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Definitions:

Square Root

A quantity which, when squared, returns the original number.

Rationalize Denominator

The process of eliminating radicals or complex numbers from the denominator of an algebraic fraction by multiplying both the numerator and the denominator by a suitable value.

Cube Root

The value that when multiplied by itself three times gives the original number.

Square Root

The original number that is obtained by squaring a certain value.