Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Every month, a company issues a cheque to pay for inventory. The average payment amount is $57,635. It takes 7 days for the cheque to
Every month, a company issues a cheque to pay for inventory. The average payment amount is $57,635. It takes 7 days for the cheque to clear. Currently, the company earns 0.020% per day on any cash balance in its bank account. The company has an option to switch to another bank, where the cheque would now take 10 days to clear, but the company would be able to earn a daily interest of 0.031%. If the company decides to switch, what is the absolute value of the net monthly interest that the company will gain or lose as a result? O $93.08 O $95.53 $97.98 $100.43 $102.88
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started