You Are Asked to Lend a Friend $20,000 for a Year

question 141

Multiple Choice

You are asked to lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,000. The interest rate on this loan is

• A) 4.50%
• B) 5.00%.
• C) 5.50%.
• D) indeterminate from this information.

---

Definitions:

Need for Power

The need for power is a psychological drive that motivates individuals to seek control or influence over others or their environment.

Homophily

The tendency of individuals to associate and bond with similar others, which can influence personal relationships, social networks, and information spread.

Group Size

A term referring to the number of individuals forming a social group, which can influence the group's dynamics, communication, and efficiency.

Leadership Position

A role or designation that entails guiding, influencing, or directing others towards the achievement of predefined objectives or goals.