After Ruth and Mike Had Paid in Advance for Their

question 81

Multiple Choice

After Ruth and Mike had paid in advance for their week's stay at a Vermont inn,Ruth felt like they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.The hospitality of the letter dealt with Ruth's cognitive dissonance by:

• A) cross-selling
• B) disintermediation
• C) spamming and flaming
• D) implementing a penetration strategy
• E) reinforcing her purchase decision

---

Definitions:

Equivalent Payment

A financial term referring to a payment that has the same value as another in terms of interest rates, periods, or other relevant factors.

Scheduled Payments

Predetermined amounts of money paid at regular intervals under a contract, such as a loan or lease.

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal amount twice per year, resulting in interest on interest.

Equivalent Stream

A series of equal payments or receipts occurring at regular intervals, used in financial analysis to simplify calculations.