Rebate refers to which of the following?

• A. A price increase
• B. A credit for future purchases
• C. The return of a portion of a payment
• D. A seasonal discount

Answer: (C)

A rebate is the return of a portion of a payment after the purchase, often issued later after meeting certain requirements. It reduces the overall amount you effectively pay, but you don’t see the money at the moment of purchase. This differs from a price increase (which would make the item more expensive), a credit for future purchases (which is usable like store credit on future orders rather than money returned after the initial purchase), or a seasonal discount (which lowers the price at the time of sale). For example, paying $1,000 and later receiving a $100 rebate leaves you with a net cost of $900.