Jane, the owner of the Jungle Adventure Tours, is considering a lockbox system for some of her accounts receivable collections. She can program her computer to send statements with different return addresses depending on the amount of the balance. The bank charges $.75 per item for lockbox service. Jane can invest cash with the bank at an annual interest rate of 3.65%. She has estimated that using the lockbox would speed up collections by 5 days. What is the break-even amount-that is, the amount at which Jane would be indifferent as to whether a customer sent the check directly to Jungle Adventure Tours or to the post office lockbox? (Rounded up to the nearest $1.00, reminder, keep your calculator set to 4 decimal places)

• Hint: B = Bank Charge per item

[(Interest Rate/365) X T]

Group of answer choices:

$500

$1,500

$2,500

$3,500