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:

Welfare Rolls

A term referring to the list or number of individuals receiving welfare benefits provided by the government.

1994

A year notable for various global events, including the signing of the North American Free Trade Agreement (NAFTA) and the establishment of the World Trade Organization (WTO).

Poverty Line

The lowest amount of money required to maintain a sufficient quality of life within a specific country.

Per Hour

A unit of measurement representing the number of occurrences or actions within one hour.