Question: Ch 07: Assignment-Using Consumer Loans You're borrowing $6,000 for a year and a half with a stated annual interest rate of 12%. Complete the following

Ch 07: Assignment-Using Consumer Loans You're borrowing $6,000 for a year and a half with a stated annual interest rate of 12%. Complete the following table. (Note: Round your answers to the nearest dollar.) Principal Finance charge Total Payback $6,000 [ Annual Percentage Rate (APR) You also want to calculate the APR (annual percentage rate) and compare it to the stated interest rate. Average Annual Finance Charge Average Loan Balance Outstanding First, compute the average annual finance harge by dividing the total finance charge of sby the lIfe of Charge by dividing the total finance charge of by the life of the loan, which is a year and a half (1.5 years) (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 calculation. (Note: Round your answers to the nearest dollar or whole percentage point.) Average Annual Finance Charge APR Average Loan Balance Outstanding The stated interest rate and APR are because the O Loan is a single-payment loan O Simple interest method was used to calculate finance charges O Term of the loan is fewer than five years

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