Finance
Under the Truth in Lending Act (TILA), the 'Annual Percentage Rate' (APR) disclosed to Florida borrowers includes:
AOnly the stated interest rate
BThe interest rate plus certain finance charges expressed as a yearly rate✓ Correct
CThe total amount of interest paid over the life of the loan
DThe lender's profit margin only
Explanation
The APR under TILA represents the true cost of borrowing, expressed as an annual rate. It includes the stated interest rate plus certain finance charges (points, origination fees, mortgage insurance), making it higher than the note rate.
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