Participants in a Frequency Program at a Hardware Store Are

question 148

Multiple Choice

Participants in a frequency program at a hardware store are the most likely to participate if the reward is:

• A) a 10 percent coupon for any item in the store
• B) a 10 percent coupon for a specific item in the store
• C) a $25 gift certificate for a meal at a restaurant
• D) a $30 voucher for hardware in the store

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Definitions:

Total Debt Service Ratio

A debt measure that financial institutions use to evaluate a borrower's ability to manage monthly payments and repay debts.

Gross Monthly Income

The total personal income earned per month before any deductions like taxes or social security contributions.

Compounded Semi-annually

Interest calculation method where interest is computed on the principal and also on the interest from previous six-month periods, applied twice a year.

Amortized

The process of paying off a debt over time in regular installments of interest and principal sufficient to repay the loan in full by its maturity date.