You are taking out a single-payment loan that uses the discount method to compute the finance charges. Computing the finance charges is done SAME/DIFFERENT the way they're computed using the simple interest method. Under the discount method, a borrower receives the principal Pus/lessthe finance charges. For example, if the principal is $4,000 and the finance charges are $480, the borrower will receive $520/4480 The following equation computes the finance charges on your loan: Fd00000=H0000000=PX+X,X in the equotion, Ho Ho.00. is the finance charge for the loan. What are the other values? P is the PRINCiphl amount of the loan. r is the stated ANNUAl. rate of interest. t is the term of the ioan in You're borrowing $2,000 for a year with a stated annual interest rate of 12%. Complete the following table. (Note: Round your answers to the nearest dellar.) First, compute the average annual finance charge by dividing the total finance charge of by the life of the loan, which is a year (1.0 year 3= (Note: Round your answers to the nearest doliar.) Peineipfl/ Next, as a single-payment loan, the average loan balance outstanding is constant at the in this case, 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=%1 The APR is SAme/Hawef/Lare the stated interest rate because the Formula to compute finance charges is the same for the discount and simple interest methods Discount method was used to calculate finance charges Term of the loan is more than six months Loan is a single-payment loon