Jumping Jack Rope Company receives a total of 200 cheques a month. The average cheque amount is $1,500. The average cheque is delayed by a total of 5 days. What is the average daily float?

Question

Quizplus · Accepted Answer

The average daily float is calculated by multiplying the average cheque amount by the number of cheques and then dividing by the number of days delayed. So, $200 \times 1,500 / 5 = 30,000$. However, since the question asks for the average daily float, we consider the total float ($30,000) as the amount floating each day due to the 5-day delay, making the correct answer $30,000, which corresponds to option E.

Jumping Jack Rope Company Receives a Total of 200 Cheques