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Anna Corp got a 2-year 2,500,000 loan from the bank at a 6% interest rate per year on July 1, 2014. They make annual interest payments on 6/30. The balance will be paid on 6/30/16.
Calendar year reporting.
6/30/2014 $1.45
12/31/2014 1.47
6/30/2015 1.48
12/31/2015 1.49
6/30/2016 1.62
Prepare all journal entries using the above rates. Provide effective cost of borrowing for each of the 3 years.
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Capstone Research Project
The following payoff table shows the profit for a decision problem with three states of nature and two Decision Alternatives (DA):
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