A Friend of Yours Would Like You to Lend Him

question 4

Multiple Choice

A friend of yours would like you to lend him $5,000 today to be paid back in 5 annual payments. What would be the equal annual end-of-year payment on this loan if you charge your friend 7% interest?

• A) $869.45
• B) $1,000.00
• C) $1,219.51
• D) $1,350.00

---

Definitions:

Naturalistic Observation

A research method where subjects are observed in their natural environment without any manipulation by the observer.

Realistic Settings

Environments or contexts that closely mimic the real-world conditions in which behaviors, events, or phenomena naturally occur.

Behavior Study

The scientific investigation of individuals' actions and reactions in various situations.

Descriptive Research Methods

Research methods that aim to observe, describe, and document aspects of a situation as it naturally occurs, without manipulating the environment.