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Transfer of Funds

The Walter Company disburses checks every two weeks that average $200,000 in total and take three days to clear. How much cash can the Walter Company save annually if it delays the transfer of funds from an interest-bearing account that pays 0.04 percent per day for these three days?

Solution Summary

The Walter Company disburses checks every two weeks that average $200,000 in total and take three days to clear. How much cash can the Walter Company save annually if it delays the transfer of funds from an interest-bearing account that pays 0.04 percent per day for these three days?

$2.19