Tenney Company, a large janitorial service company, currently pays its

employees at the end of each month. The monthly payroll totals $1,600,000. If

the firm were to extend the pay period so as to pay its employees 1 week later

throughout an entire year, how much the employees would in effect be lending

the firm for a year? The firm has potential to earn 12% on their

investment.

Required:

What is the total amount that Tenney Company can save yearly throughout

new payment policy?

Answer rating: 100% (QA)

To calculate the total amount that Tenney Company can save yearly we need to calculate the interestf... View the full answer