At the Beginning of 2017, Mary Purchased a 3-Year Certificate

question 84

True/False

At the beginning of 2017, Mary purchased a 3-year certificate of deposit (CD) for $8,760. The maturity value of the certificate was $10,000 and it was to yield 4.5%. She also purchased a Series EE bond for $6,400 with a maturity value in 10 years of $10,000. Mary must recognize $1,240 of income from the certificate of deposit in 2017, and $3,600 from the Series EE bonds in 2026.

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Definitions:

Behavioral Segmentation

The division of a market into groups based on consumer behaviors, such as purchasing habits or product usage.

Usage Rate

The frequency at which a consumer uses a product or service over a specific period, indicating their level of engagement or reliance on it.

Loyalty

The quality of being faithful to commitments or obligations, often used to describe customer behavior and the likelihood of continued patronage or support.

Strategic Fit

The alignment between an organization's strategic goals and the resources and capabilities at its disposal to achieve them.