No More Pencils Inc. disburses cheques every two weeks that average $93,000 and take seven days to

Question:

No More Pencils Inc. disburses cheques 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 0.015 percent per day for these seven days? Ignore the effects of compounding interest.

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...