On an average day, Town Center Hardware receives $2,420 in checks from customers. These checks clear the bank in an average of 2.1 days. The applicable daily interest rate is .025 percent. What is the maximum amount this store should pay to completely eliminate its collection float? Assume each month has 30 days
Darshita Changed status to publish August 13, 2020
Answer:
maximum amount this store should pay to completely eliminate its collection float= $5,082.00
Working
Max Daily Fee
=(2420 x 2.1) x .025
= 127.05
(5,082)
Darshita Changed status to publish August 13, 2020
