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:

Exported

The act of sending goods or services from one country to another country for sale or trade.

Territorial Concessions

Agreements in which a country cedes a portion of its territory or the rights to it to another country, often as part of a treaty or settlement.

Spanish Monarchy

The political system of Spain in which the country is ruled by a monarch, a family lineage that has historically oscillated between periods of monarchy and republic.

French and Indian War

A series of military engagements between Britain and France in North America (1754–1763), part of a larger conflict known as the Seven Years' War.