Finance
The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) to Montana borrowers because:
AAPR is always the same as the note rate
BAPR includes fees and costs beyond the interest rate, allowing borrowers to compare loan costs across different lenders✓ Correct
CAPR is lower than the note rate and therefore more favorable
DFederal law requires a single nationwide interest rate
Explanation
The APR includes the interest rate plus other loan costs (origination fees, mortgage insurance, certain closing costs), expressed as a yearly rate. Because it captures the true cost of borrowing, TILA requires its disclosure so Montana borrowers can accurately compare loan offers from different lenders.
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