7. Calculating finance charges using the discount method and APR on a single-payment loan 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 $4,000 and the finance charges are $480, the borrower will receive $ . The following equation computes the finance charges on your loan: Fd = Fs = Amount of Loan Interest Rate Term of Loan where Fd is the finance charge for the loan, and the term of the loan is 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 dollar.) Principal $2,000 Finance charges Loan disbursement Total payback Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. First, compute the average annual finance charge by dividing the total finance charge by the life of the loan, which is a year (1.0 year). Enter this