Your banker has analyzed your company account and has suggested that her bank has a cash management package for you. She suggests that with a concentration banking system, your float can be reduced by three days on average. You, of course, are delighted (youre not sure why), but you do know your average daily collections amount to $320,000. Your opportunity cost of funds is 9 percent. The bank provides this service for $54,000 plus a compensating balance in your current account of $76,500. (A compensating balance is the amount you are required to maintain interest free at that bank.)

By how much? (Negative answer should be indicated by a minus sign.)

Annual Saving $