FinanceIntermediateArizona Exam

The Truth in Lending Act (TILA) requires lenders to disclose the:

AAppraised value of the property
BAnnual Percentage Rate (APR) of the loanCorrect
CBorrower's credit score
DSeller's net proceeds

Why Annual Percentage Rate (APR) of the loan Is Correct

Answer B: Annual Percentage Rate (APR) of the loan

TILA (Regulation Z) requires lenders to disclose the Annual Percentage Rate (APR), which reflects the true cost of borrowing by including the interest rate plus fees.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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