Finance

The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR), which reflects:

AThe interest rate on the loan only
BThe total cost of the loan including interest, fees, and other charges expressed as a yearly rate✓ Correct
CThe prime rate plus the lender's margin
DThe rate used to calculate monthly payments

Explanation

TILA requires disclosure of the APR, which is a broader measure of the cost of borrowing that includes the interest rate plus fees, points, and other charges. The APR is always higher than or equal to the note rate.

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