On an average day, your firm receives $1,500 in cheques from customers. These cheques are processed and clear the bank in an average of 3.5 days. The applicable daily interest rate is.025 %. What is the maximum amount your firm should pay to completely eliminate the collection float? Assume each month has 30 days.
A) $252.50
B) $1,125.00
C) $2,550.00
D) $3,214.29
E) $5,250.00
Correct Answer:
Verified
Q112: West Ridge Wholesalers receives an average of
Q113: Picard Industries requires $250,000 a week to
Q114: Your firm spends $110,000 a week to
Q115: Using the Miller-Orr model, what is the
Q116: Your firm spends $35,000 a week to
Q118: The Stetson Co. receives an average of
Q119: Your firm deals strictly with three customers.
Q120: Your firm spends $150,000 a week to
Q121: Your firm generally receives 5 checks a
Q122: According to your chequebook, you have a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents