How Much Money Can Be Saved Annually by Setting Up

How much money can be saved annually by setting up a lock-box system that will process 500 cheques per day at a cost of $0.20 per cheque if each cheque averages $220, collection float is reduced by three days, and the annual interest rate is 8 percent?

A) ($27,700)
B) ($10,100)
C) $10,000
D) $16,400 reduced collection float:
= 500 cheques daily x $220 per cheque x 3 days
= $330,000
Daily return = $330,000 x .08/365 = $72.33
Daily bank charges = 500 x $0.20 = $100,000