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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

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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 gure out what your payment will be when the loan comes due. The equation to calculate the finance charge is: F. =P* In the equation, F, is the finance charge for the loan. What are the other values? Pis the principal amount of the loan is the stated annual rate of interest t is the term of the loan inyers You're borrowing 56,000 for a year and a half with a stated annual interest rate of 6% You're borrowing $5,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar) 36,000 Principal Finance charge Total Payback S Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate APR Archery Aware og 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 5 hair (1.5 years) (Note: Round your answers to the nearest dollar) First, compute the average annual rinance charge by dividing the total finance charge of 5 halt (1.5 years) = (Note: Round your answers to the nearest dollar). by the life of the loan, which is a year and o Next, as a single-payment loan, the average loan balance outstanding is constant at $6,000 Complete the calculation. (Note: Round your answers to the nearest dollar or whole percentage point.) APR Average Annual Finance Charge / Average Loan Balance Outstanding S The stated interest rate and APR are because the: Loon is a single-payment loan Simple interest method was used to calculate finance charges Term of the loan is fewer than five years

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