7. Calculating finance charges using the discount method and APRon a single-payment loan You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done the way they're computed using the simple interest method. Under the discount method, a borrower receives the principal the finance charges. For example, if the principal is $6,000 and the finance charges are $900, the borrower will receive $ The following equation computes the finance charges on your loan: Fd=Fi=Prt In the equation, Fd is the finance charge for the loan. What are the other values? P is the amount of the loan. r is the stated rote of interest. t is the term of the loan in