Finance
In New Mexico, the 'annual percentage rate' (APR) on a loan disclosure represents:
AOnly the interest rate on the loan
BThe true cost of credit expressed as a yearly rate, including interest, points, fees, and certain other charges✓ Correct
CThe rate charged on credit card balances
DThe rate at which the loan balance grows
Explanation
The APR includes the nominal interest rate plus loan origination fees, discount points, and certain other charges, expressed as a yearly rate — giving borrowers a more complete picture of total loan cost for comparison.
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