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You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your
You are taking out a single-payment loan that uses the simple interest method to compute the finance charge. You need to figure out what your payment will be when the loan comes due. The equation to caleulate the finance charge is: Fx= Amount of Losn Interest Rate Term of Losn where Fs is the finance charge for the loan, and the term of the loan is in You're borrowing $6,000 for a year and a half with a stated annual interest rate of 6%. Complete the following table. (Note: Round your answers to the nearest dollar.) Annual Percentge Rte (APR) You also want to caleulate the APR (annusl percentage rate) and compare it to the stated interest rate. Fivst, compute the average annusi finance charge by dividing the total finance charge by the life of the loan, which is a year and a half (1.5 years). Enter this value in the following equabion. (Note: Round your answers to the nearest dollar.) Next, as a single-payment loan, the average loan balance outstanding is constant at $6,000. Complete the caleulabion for APR and enter it in the following equation. (Note: Round your answers to the nearest dollsr or whole percentage point.) APR.===AverageAnnuslFinanceCharge/AverageLosnBalanceOutstanding$6,000 The stated interest rate and APR are because the: Term of the loan is fewer than five years Simple interest method was used to caleulate finance charges Losn is a single-psyment losn
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