Roger's Distributors Receives an Average of 216 Checks a Day

question 29

Multiple Choice

Roger's Distributors receives an average of 216 checks a day. The average amount per check is $629. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1.5 days. The daily interest rate on Treasury bills is 0.011 percent. What is the amount of the expected daily savings of the lockbox system?

• A)$2.04
• B)$6.92
• C)$14.95
• D)$18.10
• E)$22.42

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Definitions:

Refractory Period

The period of time following an action potential during which a neuron is incapable of firing another action potential or its threshold for firing is significantly elevated.

Orgasm

The climax of sexual stimulation, characterized by intense pleasure and physiological changes.

Stimulation

The action of arousing interest, excitement, or activity in someone or something, often through external inputs or stimuli.

Sexual Response

The physical and emotional reactions experienced during and following sexual arousal, which can include phases of desire, arousal, orgasm, and resolution.