Playing the float. Marikina Corporation routinely funds its checking account to cover all checks when written. A thorough analysis of its checking account discloses that the firm could maintain an average account balance that is 25% below the current level and adequately coverall checks presented. The average account balance is currently P900, 000. If the firm can earn 10% on short-term investments, what, if any, annual savings would result from maintaining the lower average account balance.

account to cover all checks when written. A thorough analysis of Its checking account discloses that the rm could maintain an average account balance that is 25% below the current level and adequately cover all checks presented. The average account balance is currently P900. 000. if the rm can earn 10% on short-term Investments. what, If any, annual savings would result from maintaining the lower average account balance