Which of the Following Statements About Rebates Is True

question 142

Multiple Choice

Which of the following statements about rebates is true?

• A) Rebates are used only for consumer durables such as automobiles and appliances.
• B) Most retailers want to be involved with rebate programs.
• C) Nonusers of rebates have been shown to perceive the rebate redemption process as too complicated.
• D) Rebates are increasing in popularity among both manufacturers and retailers.

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Definitions:

Effective Annual Rate

The annual return on an investment or loan taking compounding into account, expressed as a percentage.

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.