Annual Percentage Rate(APR)
cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan
consumer awareness that a particular brand exist. It is part of product positioning.
the true cost of something in terms of what you have to give up to get the item; the benefits you would have received by taking the other action.
Rule of 78
pre-payment penalty in a financing contract; the portion of a "90 days same as cash" agreement that states that the entire loan amount plus the interest accumulated over the first 90 days becomes due immediately.
an amount of money you spend, usually $300 or more, that causes some pain to part with.
What are the five steps you should follow before making a significant purchase?
1. wait overnight
2. consider your buying motives.
3. never buy anything you do not understand.
4. consider the opportunity costs of your money.
5. seek wise counsel.
What are the four major ways that companies compete for your money?
1. Personal selling
2. advertising as a marketing tool.
3. tv, radio, internet, and other media.
4. product positioning
What are product positioning techniques used to get the attention of consumers?
What percentage of "90 days same-as-cash" contracts convert to payments which are usually at 24% APR with rule of 78's prepayment penalty?
True or False;
According to Harvard University, for every hour of tv per week that you watch, you spend an average of $100 extra a year.
True or False; Contentment comes from material items.
False; no amount of stuff can equal contentment.