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 $12,000 and the finance charges are $1,440, the borrowe will receive $ The following equation computes the finance charges on your loan: F = F. =P In the equation, Fis the finance charge for the loan. What are the other values? P is the amount of the loan. r is the stated rate of interest. t is the term of the loan in You're borrowing $10,000 for two years with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar) Principal $10,000 Finance charges Loan disbursement Total payback