6. Calculating simple interest and APR on a single-payment loan You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: F, = Pxrxt In the equation, F, is the finance charge for the loan. What are the other values? P is the principal amount of the loan ris the stated annual rate of interest. t is the term of the loan in years You're borrowing $4,000 for a year and a half with a stated annual interest rate of 10%. Complete the following table. (Note: Round your answers to the nearest dollat.) Principal $4,000 Finance charges Total Payback Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. P A RA A Man Charge APR = Les Heading by the life of the loan, which is a year and a First, compute the average annual finance charge by dividing the total finance charge of hall (1.5 years) = (Note: Round your answers to the nearest dollar). Next, as a single-payment loan, the average loan balance outstanding is constant at $4,000. Complete the calculation. (Note: Round your answers to the nearest dollar or whole percentage point.) APR = Average Annual Finance Charge / Average Loan Balance Outstanding The stated interest rate and APR are because the: Term of the loan is fewer than five years Simple interest method was used to calculate finance charges Loan is a single-payment loan