Troy Toys is a retailer operating in several cities. The
individual store managers deposit daily collections at a local bank
in a noninterest-bearing checking account. Twice per week, the
local bank issues a depository transfer check (DTC) to the central
bank at headquarters. The controller of the company is considering
using a wire transfer instead. The additional cost of each
transfer would be $25; collections would be accelerated by two
days; and the annual interest rate paid by the central bank is 7.2%
(0.02% per day). At what amount of dollars transferred would it
be economically feasible to use a wire transfer instead of the
DTC? Assume a 360-day year.