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On September 1, 2020, Balboa Company invests $50,000 in a 4-month CD that pays an annual interest rate of 1.5 percent. Assume that the CD

On September 1, 2020, Balboa Company invests $50,000 in a 4-month CD that pays an annual interest rate of 1.5 percent. Assume that the CD matures on December 31 and that Balboa prepares financial statements at the end of each calendar month. Which of the following statements is true?

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