You are taking out a single-payment loun 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 $8,000 and the finance charges are $1,280, the borrower will receive $ The following equation computes the finance charges on your loan: Fs=Fs=pt In the equation, FA is 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 56,000 for two years with a stated annual interest rate of 8%. Complete the following table. (Note: Round your answers to the nearast doliac) Annuai Percentage Hate () You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. APR=AtorageLoenRolanerOnistandingAserayAsunualPhinceClarge by the life of the loan, which is two years First, compute the average annual finance charge by dividing the total finance charge of (Note: Round your answers to the nearest dollar, ) (2.0 years) = by the life of the loan, , in this case, Next, as a single-payment loan, the average loan balance outstanding is constant at the Complete the calculation. (Note: Round your answers to the nearest dollar and your percentage point to the nearest iwo decimal places) APFt = Average Annual Finance Charge/ Average Loan Balance Outstanding Formuia to compute finance charges is the same for the discount and simple internst methods Term of the foan is more than sax months Discount method was used to calculate finance charges Loan is a single payment loan