If You Make an Interest-Free Loan of $10,000 to a Friend

question 64

Multiple Choice

If you make an interest-free loan of $10,000 to a friend to help her get started in her new business and the interest rate charged by banks on similarly-risky loans is 15%,then the opportunity cost of the loan is equal to

• A) $10,000.
• B) $1,500.
• C) $11,500.
• D) $0.
• E) $8,500.

Understand the differences and applications of various research methods such as surveys, naturalistic observation, case studies, correlational studies, and experimental research.

Identify and interpret the effects of variables and potential biases in research studies.

Understand the concept of variability in data sets and how it is measured.

Evaluate the impact of outliers on mean, median, and standard deviation.

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Definitions:

Best Alternative

The most advantageous option available to a party in negotiations if the current talks fail.

Interdependent Parties

Entities or individuals that rely on each other and are mutually influenced by one another’s actions in pursuing their goals or interests.

Resolve Differences

The process of finding amicable solutions to disputes between parties with opposing viewpoints.

Interests

Activities, subjects, or pursuits that capture attention, engagement, or concern.