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, = Amount of Loan x Interest Rate x Term of Loan where F, is the finance charge for the loan, and the term of the loan is in You're borrowing $2,000 for a year with a stated annual interest rate of 4i Complete the following table. (Note: Round your answers to the nearest dollar) Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. First, compute the average annual finance charge by dividing the total finance charge by the life of the loan, which is a year (1.0 year). Enter this value in the following equation. (Note: Round your answers to the nearest dollar.) Next, as a single-payment loan, the average loan balance outstanding is constant at $2,000. Complete the calculation for APR and enter it in the following equation. (Note: Round your answers to the nearest dollar or whole percentage point.) APR - Average Annual Finance Charge / Average Loan Balance Outstanding =1$2,000 os The stated interest rate and APR are because the: Term of the loan is fewer than five years Loan is a single-payment loan Simple interest method was used to calculate finance charges