How do i factory reset my phone to get rid of the previous owner?

how do i factory reset my phone to get rid of the previous owner? I got this from a neighbor cause he upgraded to a iPhone 5 and gave me his iPhone 4 and I can not do anything as it wants his password to do any downloading for voxer or itunes i can do anything on there but download so he said i have to factory reset it how do i do that i am a totally stumped on this
can anyone help me

Look harder...
Settings -> general -> reset -> erase all contents and settings.

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