Phils Carvings receives an average of 39 checks a day. The average amount per check is $1,560. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 2.2 days. The bank charges $.35 a check for this service. The daily interest rate on Treasury bills is .008 percent. What is the average daily cost of the lockbox system?

1.$11.16

2.$4.87

3.$13.65

4.$8.11

5.$19.19