On an average day, ABC, Inc. receives $30,000 in checks from customers. These checks clear...
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Finance
On an average day, ABC, Inc. receives $30,000 in checks from customers. These checks clear the bank in an average of 2.5 days. The applicable daily interest rate is 0.05 percent. What is the maximum amount ABC, Inc. should pay to completely eliminate the collection float? Assume each month has 30 days.
a. $7500
b. $75,000
c. $3750
d. $150,000
e. $50,000
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