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Attempts: Attention: Due to a bug in Google Chrome, this page may not fun on correctly. Click here to learn more 7 Calculating finance charges

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Attempts: Attention: Due to a bug in Google Chrome, this page may not fun on correctly. Click here to learn more 7 Calculating finance charges using the discount method and APR on a single-paymenti 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 $720, the borrower will receive The following equation computes the finance charges on your loan: F = F, EP th the equation, Fg is the finance charge for the loan. What are the other values? P is the amount of the loan. Iris the stated rate of interest. It is the term of the loan in IHNOUT borrowing $4,000 for a year and a half with a stated annual interest rate of 8%. Complete the following table Note: Round your answers to the nearest dollar Annual Percentage Rate (APR) Il you also want to calculate the APR (annual percentage rates and compare it to the stated interest Average Annual Finance charge APR EIH Average Loan Balance Outstanding compute the average annual finance charge by dividing the total finance charge of by the life of loan, which is a year and a half (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 the this case, $ T HE complete the calculation. (Note: Round your answers to the nearest dollar and your percentage point to the nearest two decimal places.) APR Average Annual Finance Charge Average Loan Balance Outstanding the stated interest rate because O term of the loan is more than Loan a single payment and 0 Discount method was used to calcul Formuld to compute finance charge finance the same nd simple interest methods

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