You're borrowing $$4,000$ for two years with a stated annual interest rate of $4\%.$

Complete the following table. $($Note: Round your answers to the nearest dollar.$)$

Principal $$4,000$

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 two years $(2\mathrm{.}0$ years$).$ Enter this value in the following equation. $($Note: Round your answers to the nearest dollar.$)$

Next, as a single$-$payment loan, the average loan balance outstanding is constant at the

Enter the value for the average loan balance outstanding in the following equation. Finally, complete the calculation for APR and enter it in the following equation. $($Note: Round your answers to the nearest dollar and your percentage point to the nearest two decimal places.$)$

APR $=$ Average Annual Finance Charge $\frac{?}{?}$ Average Loan Balance Outstanding

The APR is the stated interest rate because the

Term of the loan is more than six months

Loan is a single$-$payment loan

Formula to compute finance charges is the same for the discount and simple interest methods

Discount method was used to calculate finance charges