Finance
Under the Truth in Lending Act (TILA), the APR disclosed to a borrower represents:
AThe note rate only
BThe total cost of credit expressed as a yearly rate✓ Correct
CThe maximum allowable interest rate
DThe rate after the first adjustment on an ARM
Explanation
The APR (Annual Percentage Rate) under TILA represents the total cost of credit expressed as a yearly rate, including interest, points, and fees. It allows borrowers to compare loan costs across different lenders.
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