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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