A parent company settles the collection account balances of its subsidiaries once a week.

(That is, each week it transfers any balances in the accounts to a central account.) The cost of a wire transfer is $10. A check costs $.80. Cash transferred by wire is available the same day, but the parent must wait three days for checks to clear. Cash can be invested at 12% per year.

How much money must be in a collection account before it pays to use a wire transfer?

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