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Your neighbor goes to the post office once a month and picks up two checks, one

ID: 2784735 • Letter: Y

Question

Your neighbor goes to the post office once a month and picks up two checks, one for $14,100 and one for $5,100. The larger check takes three days to clear after it is deposited; the smaller one takes two days. Assume 30 days in a month.

   

What is the average daily float? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What are the average daily receipts? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the weighted average delay? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Your neighbor goes to the post office once a month and picks up two checks, one for $14,100 and one for $5,100. The larger check takes three days to clear after it is deposited; the smaller one takes two days. Assume 30 days in a month.

Explanation / Answer

1)

Total float = 3*14100 + 2*5100 = 52500

2)

Average daily float = 52500 / 30 = 1750

3)

Average daily receipts = (14100+5100)/30 = 640

4)

Weighted average delay = 3*(14100/(14100+5100)) + 2*(5100/(14100+5100)) = 2.73 days