JKL Tools receives an average of $3,300 a day in cheques. The delay in processing averages 4 days. The current interest rate is .02% per day. What is the highest daily fee JKL should pay to
Eliminate the ﬂoat entirely?

Question

Quizplus · Accepted Answer

The highest daily fee JKL should pay is the interest lost due to the float. The float is $3,300 x 4 days = $13,200. The daily interest on this amount is $13,200 x 0.0002 = $2.64.

JKL Tools Receives an Average of $3,300 a Day in Cheques