Value of Delay [LO2] No More Pencils, Inc., disburses checks every two weeks that average $93,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an interest-bearing account that pays .015 percent per day for these seven days? Ignore the effects of compounding interest.
Value of Delay [LO2] No More Pencils, Inc., disburses checks every two weeks that average $93,000 and take seven days to clear. How much interest can the company earn annually if it delays transfer of funds from an interest-bearing account that pays .015 percent per day for these seven days? Ignore the effects of compounding interest.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please explain each step clearly, and no excel formula should be used for solving this problem
![9. Value of Delay [LO2] No More Pencils, Inc., disburses checks every two weeks
that average $93,000 and take seven days to clear. How much interest can the
company earn annually if it delays transfer of funds from an interest-bearing
account that pays .015 percent per day for these seven days? Ignore the effects of
compounding interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa811a678-2488-4bfb-b08c-01e8d5e5d76f%2F0f4c81f1-351b-4fb1-97f2-f106b53663ff%2Fwrcx2ql_processed.png&w=3840&q=75)
Transcribed Image Text:9. Value of Delay [LO2] No More Pencils, Inc., disburses checks every two weeks
that average $93,000 and take seven days to clear. How much interest can the
company earn annually if it delays transfer of funds from an interest-bearing
account that pays .015 percent per day for these seven days? Ignore the effects of
compounding interest.
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