The Rate of Return Used When Computing a Present Value

question 95

Multiple Choice

The rate of return used when computing a present value is referred to as the ______ rate while the rate used when computing a future value is referred to as the _____ rate.

• A) Compound; discount.
• B) Compound; simple.
• C) Compound; compound.
• D) Discount; discount.
• E) Discount; compound.

---

Definitions:

Credibility

The quality or power of inspiring belief; the degree to which a source or message is considered trustworthy and reliable.

Advertising Wear Out

The decline in audience response as a result of repeated exposure to the same advertisement over time.

Simple Repetition

The process of repeating something multiple times in order to learn or memorize it, often used as a basic study or advertising technique.

Repetition With Variation

Repeating the same information, but in a varied format.