A company receives an average of 280 cheques a day with an average value of $160 a cheque. The annual interest rate is 4%. The current delay in processing and clearing is three days. If the company implements a lockbox service that has been proposed to them, the clearing time will be reduced by two days. What is the maximum fee per cheque that can be charged by the bank and still have the lockbox service be acceptable to the company?

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The Answer of A company receives an average of 280 cheques a day with an average value of $160 a cheque. The annual interest rate is 4%. The current delay in processing and clearing is three days. If the company implements a lockbox service that has been proposed to them, the clearing time will be reduced by two days. What is the maximum fee per cheque that can be charged by the bank and still have the lockbox service be acceptable to the company?

A Company Receives an Average of 280 Cheques a Day