Roger's Distributors Receives an Average of 310 Checks a Day

question 91

Multiple Choice

Roger's Distributors receives an average of 310 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)$22.42
• E)$32.17

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Definitions:

Workforce Entry

The act or process of starting to participate in the labor market by seeking, obtaining, and beginning a new job or career.

Higher Education

Education provided by universities and colleges, usually following the completion of secondary education, leading to degrees and other qualifications.

Gestational Surrogacy

Occurs when the sperm and the egg from the couple seeking surrogacy is fertilized through in vitro fertilization and implanted into the surrogate, making the child biologically related to both parents but not the surrogate.

Traditional Surrogacy

Occurs when the surrogate’s egg is fertilized by the father’s sperm, making the child biologically related to the father and the surrogate.