M CONSUne Loans Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR. Average Anal Finance Chang Average Loan Balance Chanting First, compute the average annual finance charge by dividing the total finance charge of $ (2.0 years) = S (Note: Round your answers to the nearest dollar). by the life of the loan, which is two years Next, as a single-payment loan, the average loan balance outstanding is constant at $4,000. Complete the calculation. (Note: Round your answers to the nearest dollar or whole percentage point.) APR - Average Annual Finance Charge / Average Loan Balance Outstanding The stated interest rate and APR are because the: Loan is a single-payment loan Term of the loan is fewer than five years Simple interest method was used to calculate finance charges M CONSUne Loans Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR. Average Anal Finance Chang Average Loan Balance Chanting First, compute the average annual finance charge by dividing the total finance charge of $ (2.0 years) = S (Note: Round your answers to the nearest dollar). by the life of the loan, which is two years Next, as a single-payment loan, the average loan balance outstanding is constant at $4,000. Complete the calculation. (Note: Round your answers to the nearest dollar or whole percentage point.) APR - Average Annual Finance Charge / Average Loan Balance Outstanding The stated interest rate and APR are because the: Loan is a single-payment loan Term of the loan is fewer than five years Simple interest method was used to calculate finance charges