Art Invested $100 Two Years Ago at 8 Percent Interest

question 40

Multiple Choice

Art invested $100 two years ago at 8 percent interest. The first year, he earned $8 interest on his $100 investment. He reinvested the $8. The second year, he earned $8.64 interest on his $108 investment. The extra $.64 he earned in interest the second year is referred to as:

• A) free interest.
• B) bonus income.
• C) simple interest.
• D) interest on interest.
• E) present value interest.

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Definitions:

Product Features

Attributes or characteristics of a product that are intended to offer benefits and solve consumers' problems.

Brand Marks

Visual symbols or logos that identify a brand, making it recognizable to consumers.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Perceptual Mapping

Perceptual mapping is a diagrammatic technique used by marketers to visually display the perceptions of customers or potential customers to compare attributes of different products.