On an average day,a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%. What is the firm's disbursement float?

Question

Quizplus · Accepted Answer

Disbursement float is calculated as the amount of checks written multiplied by the number of days it takes for them to clear. Here, $1,500 * 7 = $10,500.

On an Average Day,a Company Writes Checks Totaling $1,500