Sixty Years Ago, Your Mother Invested $4,500

question 52

Multiple Choice

Sixty years ago, your mother invested $4,500. Today, that investment is worth $430,065.11. What is the average annual rate of return she earned on this investment?

• A) 6.67 percent
• B) 11.71 percent
• C) 7.90 percent
• D) 10.40 percent
• E) 12.02 percent

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Definitions:

Consumer Purchase Decision Process

The stages a consumer goes through when deciding to buy a product, typically including need recognition, information search, evaluation, purchase, and post-purchase evaluation.

Sales Promotion

Marketing activities—other than personal selling, advertising, and public relations—that stimulate consumer purchasing and dealer effectiveness, such as coupons, samples, and contests.

Coupons

Vouchers or codes offering a discount or rebate on a particular product or service.

Satisfied First-Time Triers

Individuals who have a positive experience with a product or service on their first use, leading to potential loyalty.